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In a victory for the pharmaceutical industry, a federal appeals court ruled drug companies have the right to limit discounts to hospitals that rely on numerous contract pharmacies as they participate in a U.S. government drug discount program.

The decision was made in response to lawsuits that were originally filed by three large drugmakers — Sanofi, Novo Nordisk, and AstraZeneca — that the federal government was unlawfully interpreting key provisions in the controversial 340B drug discount program. The matter is actually not resolved, though, because the same dispute is still being considered in two other appeals courts.

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