The decision affirms a lower court’s ruling that found no federal preemption of Arkansas’ Act 1103, which restricts pharmaceutical manufacturers from limiting the ability of covered entities to use contract pharmacies for distributing discounted drugs under the 340B program, according to court documents obtained by Becker’s.
The 340B program helps health centers, hospitals and clinics provide affordable medications to people who can’t afford them.
PhRMA argued that Act 1103 was preempted by both the 340B program and the Federal Food, Drug and Cosmetic Act, asserting that the law conflicted with federal rules governing drug distribution.
The case was initially brought in the U.S. District Court for the Eastern District of Arkansas, where the court sided with the state. PhRMA then appealed to the 8th Circuit Court of Appeals, which affirmed the lower court’s ruling.
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