PhRMA Sues Louisiana Over 340B Drug Discount Law

Industry trade group PhRMA has filed a complaint in district court alleging that Louisiana’s law requiring drugmakers to provide 340B drug discounts to contract pharmacies violates federal statute.

The lawsuit, filed July 27 in the U.S. District Court for the Western District of Louisiana, Lafayette Division, marks the latest legal battle between industry and government over the 340B drug discount program, where drugmakers have decried the rise of contract pharmacies not owned by covered entity hospitals which they say has led to duplicate discounts and abuse.

“We filed a complaint because the 340B drug pricing program is a comprehensive federal program that is governed exclusively by the federal government,” PhRMA Executive Vice President and General Counsel James C. Stansel told FDAnews Monday, arguing that “Louisiana’s attempt to put state mandates and rules in place regarding the operation of a federal program violates the supremacy clause of the U.S. Constitution.”

The Louisiana statute, signed into law on June 19, specifically prohibits drugmakers from denying or restricting the delivery of 340B drugs to contract pharmacies.

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