A Mississippi federal judge has denied efforts by Novartis and industry trade group PhRMA to thwart a state law that would keep drugmakers from imposing some restrictions around the federal drug discount program known as 340B, the latest result in a legal battle being fought in several states.
The 340B program requires drug manufacturers to offer discounts to certain health systems and hospitals serving low-income populations. The program has grown in recent years, and the pharma industry has argued that state laws, such as the one recently enacted in Mississippi, could accelerate that growth. The new state law, HB 728, requires drugmakers to supply discounted drugs to an unlimited number of pharmacies under 340B.
Novartis and PhRMA argued in separate lawsuits that HB 728 “invalidly expands” their obligations under the program. Both plaintiffs have been involved in similar litigation in other states, including Maryland and West Virginia.
Judge Halil Ozerden rejected their requests for a preliminary injunction on Monday, ruling that both Novartis and PhRMA failed to show a “substantial likelihood of success on the merits.”
Novartis said it plans to appeal. “The unfortunate reality today is that the overwhelming majority of 340B discounts are not passed on to patients, nor are they used to strengthen the safety net as intended,” a Novartis spokesperson told Endpoints News. “We believe the widely acknowledged program integrity concerns under the 340B program will only be exacerbated by statutes such as the one we have challenged in Mississippi.”
PhRMA deputy VP of public affairs Nicole Longo told Endpoints that the law “violates the US Constitution while doing nothing to lower costs for patients.”