In December, courts in West Virginia and Mississippi weighed requests from pharmaceutical manufacturers for injunctive relief to bar implementation of the states’ respective 340B Drug Pricing Program contract pharmacy laws. These cases follow the U.S. Supreme Court’s decision to decline hearing a challenge to an Arkansas law, leaving in place substantial 340B contract pharmacy protections. However, in West Virginia a judge found a manufacturer’s challenge was likely to succeed on its merits and granted the injunction, while the Mississippi judge initially ruled against the manufacturer.
West Virginia Judge Deals Blow to State Contract Pharmacy Law
On Dec. 19, 2024, a West Virginia judge issued a preliminary injunction against state enforcement of S.B. 325. The law bars manufacturers from restricting access to 340B dispensing entities, restricts a manufacturer’s ability to acquire claims and utilization data, and penalizes any manufacturer that violates these requirements.
In the suit, Pharmaceutical Research and Manufacturers of America and the manufacturer Novartis alleged this latter provision, restricting audits of 340B covered entities, would bar manufacturers from their audit rights included in federal 340B statute.
The judge found this argument against the claims data restriction was likely to succeed on its merits and granted the requested injunctive relief, pending a hearing for the full case.
Mississippi Judge Denies Injunction Request
Separately, in a Dec. 23, 2024 preliminary ruling, a district court judge declined to provide injunctive relief to pharmaceutical manufacturer AstraZeneca in the manufacturer’s complaint against Mississippi’s contract pharmacy access law.
The judge found that AstraZeneca failed to a show a substantial likelihood that it will prevail on the merits in their complaint and objects to AstraZeneca’s assertation that the state law alters the price of 340B covered drugs. The court notes that most rulings on the matter have concluded that contract pharmacy access mandates are legal under federal law and that the Supreme Court recently declined to hear a challenge to Arkansas’ own law.
Contact Director of Policy Rob Nelb, MPH, at rnelb@essentialhospitals.org or 202.585.0127 with questions.
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