In a series of federal lawsuits filed over the past month, Novartis, AstraZeneca, Abbvie, and PhRMA are suing Missouri to block enforcement of a new state law that requires pharmaceutical companies to provide medical providers with unlimited access to discounted drugs for their pharmacies. The companies argue that the law intrudes into interstate commerce and violates the Supremacy Clause of the United States Constitution.
Under the new law, drugmakers must accept orders to deliver medications to providers eligible for discounts under the 340B program, with eligible providers able to have an unlimited number of contracts with pharmacies for dispensing prescriptions. The law is set to take effect on Wednesday, but the companies have asked for a preliminary injunction to block its enforcement.
The pharmaceutical companies claim that the 340B program, which offers discounted drugs to eligible providers, is being exploited by disproportionate share hospitals and for-profit pharmacies, leading to inflated prices for consumers and insurance companies. They argue that the law infringes on their property rights and creates an arbitrage scheme that benefits certain providers and pharmacies at the expense of others.
The Missouri Hospital Association and the Missouri Primary Care Association have sought to intervene in the lawsuits, stating that the revenue generated from 340B medications is essential for supporting their operations and providing critical services. The legal battle highlights the ongoing tensions between pharmaceutical companies, medical providers, and lawmakers over the regulation and implementation of drug pricing laws.
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