LITTLE ROCK, Ark. (Legal Newsline) - Pharmaceutical Research and Manufacturers of America filed a federal complaint on September 29 in the Eastern District of Arkansas against Alan McClain, in his official capacity as Commissioner of the Arkansas Insurance Department, and Leslie Rutledge, in her official capacity as Attorney General of Arkansas, for preemption under the Federal 340B Statute and Dormant Commerce Clause - Extraterritoriality.
According to the complaint, Pharmaceutical Research and Manufacturers of America ("PhRMA") represents the nation's leading innovative biopharmaceutical research companies, who are devoted to discovering and developing medicines that help patients to live longer and healthier lives.
Disputes have risen nationwide about the use of "contract pharmacies" under what is known as the federal "340B" drug discount program. The core of the dispute is between drug manufacturers and for-profit pharmacies.
PhRMA members believe that for-profit pharmacy interests have found illegal ways to leverage the 340B discounts to their financial benefit, often without assisting the vulnerable patient populations that the 340B program was intended to help and have brought litigation in federal courts in Maryland, Indiana, Delaware, New Jersey, and the District of Columbia.
This case is to challenge Act 1103 enacted in May 2021 which purports to mandate federal 340B program pricing for certain pharmacies in Arkansas, which imposes requirements that conflict with the federal program and intrudes with regulations set by Congress on pricing, manufactures, pharmacies and participation in the program, the suit says.
PhRMA is represented by Joshua C. Ashley and Philip J. Perry.
U.S. District Court for the Eastern District of Arkansas Central Division case number 4:21-cv-00864-BRW