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