07:11 AM EST, 11/15/2024 (MT Newswires) -- Eli Lilly and Company ( LLY ) said Thursday it has filed a lawsuit against the US Health Resources and Services Administration over the latter's purported rejection of the drug company's proposal to alter how it offers reduced prices on medicines in the 340B program.

The company claimed that the 340B program currently uses a "slow, indirect 'product replenishment' model," which it claims was designed to exploit arbitrage opportunities and allows for-profit pharmacies, third-party administrators and large hospitals circumvent the law.

Lilly claimed that its proposed repayment model, using the drug discount management platform developed by Kalderos "is far better," paying cash to each covered entity weekly and providing clearer pricing data.

"This model offers faster payments, improves cash flow for covered entities and increases transparency," the company said.

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