On January 20, 2026, Sagebrush Health Services announced that it had filed a lawsuit in the U.S. District Court for the Central District of California on January 16, 2026, after an earlier state‑court filing on December 30, 2025. The suit accuses Amgen of unlawfully terminating the sale of discounted drugs to Sagebrush’s clinics and of clawing back at least $7 million in past 340B savings, seeking treble damages and punitive relief.
Sagebrush, a nonprofit that serves more than 10,000 patients in Nevada, claims that Amgen’s actions disrupted its ability to provide essential medications under the federal 340B Drug Pricing Program, which allows covered entities to purchase outpatient drugs at significantly reduced prices. The lawsuit seeks the return of the disputed $7 million plus additional damages, underscoring the financial stakes for both parties.
Amgen has a history of challenging the scope of the 340B program. In late 2024 the company, along with Eli Lilly and UCB, sued the Health Resources and Services Administration to contest the eligibility of certain STD clinics, including Sagebrush, for 340B pricing. Amgen has also restricted 340B pricing for drugs dispensed at community pharmacies, drawing criticism and legal challenges from 340B advocacy groups. These actions illustrate a broader pattern of Amgen testing the limits of federal drug‑pricing regulations.
The lawsuit could expose Amgen to substantial financial penalties, including treble damages, and may prompt additional regulatory scrutiny of its 340B practices. A favorable ruling for Sagebrush could force Amgen to restore lost discounts and could damage the company’s reputation among nonprofit health providers and investors concerned with compliance and ethical business practices.
Amgen has not issued a formal response to this specific lawsuit. A company spokeswoman stated that Amgen does not comment on pending litigation. No market reaction has been reported in the available sources.
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