A federal judge issued a preliminary injunction, temporarily blocking the U.S. government’s 340B Rebate Model Pilot Program. The program was scheduled to launch on January 1, 2026. The court determined that regulators likely failed to meet administrative requirements before initiating the major change to how discounted drugs are supplied to safety-net hospitals.
The ruling marks a notable development for the pharmaceutical sector. The blocked pilot program would have shifted the system from upfront discounts to a rebate model.
AbbVie and other major drug manufacturers had sought to intervene in the case to defend the pilot. Although the court denied their motion to intervene, the companies received permission to participate as amici curiae, or friends of the court.