A federal judge has dismissed with prejudice AbbVie’s lawsuit challenging Mississippi’s Defending Affordable Prescription Drug Costs Act, granting summary judgment to Mississippi Attorney General Lynn Fitch, according to a June 3 final judgment.
AbbVie and several affiliated companies sued Mississippi in June 2024, seeking declaratory and injunctive relief against the Defending Affordable Prescription Drug Costs Act. The drugmaker argued the law conflicted with federal 340B drug pricing requirements and violated multiple provisions of the U.S. and Mississippi constitutions.
The law prohibits drug manufacturers and distributors from restricting or interfering with the acquisition or delivery of 340B drugs to pharmacies that contract with 340B-covered entities. Violations are enforceable through Mississippi’s Consumer Protection Act.
AbbVie argued the statute improperly expanded state authority over the federal 340B program and challenged the law on preemption, takings, due process and commerce clause grounds. The company asked the court to block enforcement of the measure and declare it unconstitutional.
The ruling is the latest in a growing split among federal courts over state 340B contract pharmacy laws. The 5th Circuit previously upheld Mississippi’s law at the preliminary injunction stage, and the Supreme Court rejected a challenge to Arkansas’ 340B law in December 2024. But courts have gone the other way too: the 4th Circuit in March upheld a block on a similar law in West Virginia, marking the first federal appeals court win for drugmakers on state 340B statutes. AbbVie and PhRMA have also challenged comparable laws in North Dakota and other states.
At the Becker's 11th Annual IT + Revenue Cycle Conference: The Future of AI & Digital Health, taking place September 14–17 in Chicago, healthcare executives and digital leaders from across the country will come together to explore how AI, interoperability, cybersecurity, and revenue cycle innovation are transforming care delivery, strengthening financial performance, and driving the next era of digital health. Apply for complimentary registration now.