The 4th U.S. Circuit Court of Appeals upheld a preliminary injunction blocking West Virginia from enforcing a law requiring drugmakers to provide 340B drug discounts to contract pharmacies.
The March 31 decision stems from a consolidated lawsuit filed in December 2024 by the Pharmaceutical Research and Manufacturers of America, AbbVie and Novartis. The court affirmed a lower court’s finding that the state law is likely preempted by federal law, holding that West Virginia sought to impose additional requirements on the federal 340B Drug Pricing Program, which is administered by HHS.
Each violation of the statute carries a $50,000 penalty. The law was challenged in the U.S. District Court for the Southern District of West Virginia and argued before the 4th Circuit on Sept. 9.
The ruling differs from decisions by the 5th and 8th U.S. Circuit Courts of Appeals, which upheld similar laws in Louisiana and Arkansas.
The American Hospital Association, which filed amicus briefs supporting West Virginia in the district and appeals courts, criticized the decision. AHA General Counsel Chad Golder said in a March 31 news release that the ruling “invents new theories of preemption that lack any basis in the law.”
