LITTLE ROCK, Ark. (Legal Newsline) - A pharmaceutical manufacturer is challenging an Arkansas law that forces it to offer discounted products to an unlimited amount of pharmacies.
AstraZeneca Pharmaceuticals has filed a lawsuit March 25 in federal court against Alan McClain, the Commissioner of the Arkansas Insurance Department. The suit is in response to the 340B Drug Pricing Nondiscrimination Act, known as Act 1103, which requires pharmaceutical manufacturers to offer steeply discounted pricing for sales at an unlimited number of contract pharmacies.
Previously, those discounts were limited to 15 types of entities that do not include off-site, for-profit pharmacy chains like CVS or Walgreens.
AstraZeneca argues that this state law contradicts federal law and unlawfully expands the scope of the Federal 340B program.
The plaintiff also asserts that Act 1103 is preempted by federal patent law as it forces manufacturers to provide patented drugs at significantly reduced prices.
Additionally, AstraZeneca claims that the act violates the Contracts Clause of the U.S. Constitution by interfering with agreements between manufacturers and the U.S. Department of Health and Human Services (HHS).
Plus, the U.S. Court of Appeals for the Third Circuit recently ruled against a structure such as the one Arkansas hopes to implement, the case.
Conner Eldridge of Eldridge Brooks represents AstraZeneca, as do lawyers from Arnold & Porter Kaye Scholer.