AHF sues Johnson & Johnson over AIDS drug pricing

The Washington DC, USA-based AIDS Healthcare Foundation (AHF) has filed a law suit in the Superior Court of the State of California alleging that, between 2005-2012, US health care giant Johnson & Johnson (NYSE: JNJ) and its subsidiaries failed to provide legally required discounts for HIV drugs, overcharging the AHF by as much as $2 million during the seven year period.

J&J (pictured) is bound by contractual obligations to sell drugs, including AIDS drugs, to the AHF and others at discounted prices under the 340B federal discount drug program, the Foundation asserts.

The purpose of the 340B Program is to allow safety net providers such as AHF to stretch scarce resources as far as possible, reaching more eligible patients and providing more comprehensive services.