Health Centers Move to Dismiss Challenge to Contract Pharmacy Law
- Details
- Published: Thursday, 21 December 2023 09:37
- Written by 340B Editor
Louisiana is seeking the dismissal of AstraZeneca's lawsuit against the state's contract pharmacy law.
Louisiana State Attorney General, Jeff Landry, filed a motion on December 15, requesting a summary judgment to dismiss AstraZeneca's complaint. The lawsuit challenges Louisiana Act 358, which prevents drug manufacturers from denying 340B pricing to pharmacies under contract with a 340B covered entity in the state.
AstraZeneca had previously filed a motion on November 3, seeking a summary judgment to declare Act 358 unconstitutional. The company argued that the law violates the Supremacy Clause of the U.S. Constitution by involving Louisiana officials in the management of a federally created prescription drug program.
In response, both the Louisiana Attorney General and the Louisiana Primary Care Association (LPCA) filed motions asserting that Act 358 is not preempted. They argued that the law regulates drug distribution, not pricing, and does not conflict with Section 340B, which governs pricing. The LPCA emphasized that Congress was aware of state contract pharmacy laws when enacting and amending Section 340B.
AstraZeneca v. Landry is one of three ongoing challenges to Act 358 in the same federal district court. AbbVie and the Pharmaceutical Research and Manufacturers of America (PhRMA) have also filed challenges. A spokesperson for AstraZeneca stated the company's commitment to the 340B program and compliance with contract pharmacy arrangements.
The court is expected to decide on the legality of Louisiana's law, which protects covered entities' right to dispense 340B drugs at contract pharmacies. The outcome will impact similar legal battles in other states, such as Arkansas, which has also enacted a contract pharmacy law.
Louisiana and Arkansas are the only states with laws safeguarding 340B contract pharmacies from restrictions imposed by drug manufacturers. Several manufacturers have adjusted their contract pharmacy policies in response to these state laws. At least six manufacturers have made changes in Louisiana, and seven in Arkansas.
This report first appeared in 340B Report 12/21/2023