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Amid a closely watched legal battle, Amgen (AMGN) has joined the growing ranks of major drug makers curtailing the discounts offered through a federal program for safety-net hospitals and clinics.

As of Jan. 3, 2022, the company will no longer offer discounts on certain drugs to contract pharmacies used by hospitals and clinics that serve low-income populations and purchase medicines under the 340B Drug Discount Program, according to a letter sent by Amgen. The program requires drug makers to offer discounts that are typically estimated to be 25% to 50% — but could be much higher — on all outpatient drugs.

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