Despite rebukes by two federal circuit courts, an HHS sub-agency continues to overstep its authority when administering a drug-discount program.

Eli Lilly (NYSE:LLY) has filed a lawsuit over a U.S. health agency's alleged attempts to block its model for offering rebates for drugs supplied under the government's 340B Program, days after its rival Johnson & Johnson (NYSE:JNJ) filed a similar lawsuit.

Eli Lilly said on Thursday it sued the federal Health Resources and Services Administration (HRSA) over allegedly blocking the company's plan to change the way it offers drug discounts to hospitals.

The lawsuit is the second by a large drugmaker in recent days challenging how it provides required discounts to certain hospitals.

Johnson & Johnson is escalating its fight with the federal government over its controversial plan to change how it doles out drug discounts to hospitals. | Johnson & Johnson is escalating its fight with the federal government over its controversial plan to change how it doles out drug discounts to hospitals.

Eli Lilly proposed a plan to ensure 340B entities pay no more than the ceiling price by providing them with cash directly on a weekly basis.

Key Takeaways Eli Lilly has joined Johnson & Johnson in filing a lawsuit against the federal government over a decades-old drug discounting program.The companies have said the 340B program, which requires drugmakers to sell discounted medications to certain medical facilities,