New York, January 26, 2026, 18:38 EST — Trading after-hours.
- Shares of Eli Lilly slipped roughly 0.1% in late trading, lagging behind the broader market.
- The American Hospital Association called on U.S. regulators to halt Lilly’s expanded 340B claims-data submission policy ahead of the Feb. 1 deadline.
- Attention shifts to Lilly’s Feb. 4 earnings and an important FDA ruling on its oral obesity drug.
Eli Lilly and Company shares (LLY.N) slipped roughly 0.1% to $1,062.75 in after-hours on Monday after the American Hospital Association called on U.S. health officials to halt the drugmaker’s new data-reporting policy linked to the 340B drug discount program. (American Hospital Association)
The dispute is critical because 340B remains a flashpoint: hospitals argue the program supports care for low-income patients, but drugmakers push for stricter controls to stop “duplicate discounts,” where a single prescription triggers multiple price cuts. (Reuters)
STAT News reported that Lilly plans to expand claims-data reporting beyond just contract pharmacies, pushing most hospitals and clinics in its network to submit detailed claims data. The move marks the first time a major drugmaker has taken this approach. Lilly aims to use this data to tackle what it describes as duplicate discounts, according to the report. (STAT)
In a Jan. 26 letter to HRSA Administrator Thomas Engels, AHA General Counsel Chad Golder pushed the agency to block the new policy and hinted at civil fines for “intentionally overcharging 340B hospitals.” The group flagged Lilly’s Jan. 15 notice, which demands claims-level data across its entire portfolio. They warned that any missing or inaccurate info could lead to losing 340B ceiling price access. “All told, Lilly’s draconian new policy is a case of ‘déjà vu all over again,’” the letter stated. (American Hospital Association)
Drugmakers and hospitals have sparred in court over 340B for years, particularly around efforts to convert discounts into a post-purchase rebate system. In 2024, Lilly took legal action against HRSA after the agency blocked its plan for 340B discounts, Reuters reported. (Reuters)
Lilly underperformed a stronger market on Monday: the SPDR S&P 500 ETF Trust (SPY) climbed roughly 0.5%, while the Health Care Select Sector SPDR Fund (XLV) advanced around 0.4%. Shares of Novo Nordisk listed in the U.S. jumped approximately 2.8%.
The policy debate unfolds as investors zero in on Lilly’s obesity business and the next wave of weight-loss drugs. Earlier this month, Lilly’s chief scientific and product officer Daniel Skovronsky told Reuters the company plans to roll out its oral weight-loss pill orforglipron “in many, many countries” rapidly, adding the expected cash price would be akin to “Starbucks pricing.” (Reuters)
The FDA is aiming for an April 10 decision on orforglipron following setbacks in reviews tied to its fast-track voucher program, internal documents viewed by Reuters reveal. A spokesperson for Lilly said approval might come in Q2, aligning with the agency’s current timeline. (Reuters)
The 340B dispute could still take a harsher toll on sentiment if regulators step in or new lawsuits push for changes to the policy. Drug pricing remains political oxygen in Washington, and a messy battle risks dragging in wider worries about net pricing and access.
Traders are gearing up for Lilly’s Feb. 4 earnings report and conference call, where investors will zero in on demand, supply issues, and pricing tactics within its diabetes and obesity lineup. (Nasdaq)
