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.

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

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,

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.

Johnson & Johnson sued the U.S. Health and Human Services Department on Tuesday, accusing the agency of blocking its plan to sell its psoriasis treatment Stelara and blood thinner Xarelto to some hospitals at full price before applying drug rebates.

The company filed a lawsuit asking for a federal court’s permission to change when it gives lucrative drug discounts to hospitals.

Johnson & Johnson files suit against HHS over 340B program, proposing hospitals pay full price upfront for drugs and receive rebates later. Read more here.