Novartis Pharmaceuticals Corp. has filed suit to block Washington state’s new 340B law, arguing it conflicts with federal 340B rules and violates the U.S. Constitution.
The law, which takes effect June 10, 2026, bars drug manufacturers from restricting contract pharmacy access or requiring claims data as a condition of offering 340B pricing. Novartis alleges the statute unlawfully overrides manufacturer discretion permitted under federal law and imposes extraterritorial pricing mandates that violate the dormant Commerce Clause, according to a March 25 filing in the Western District of Washington state.
Novartis said its current 340B policy, which allows covered entities without in-house pharmacies to contract with one pharmacy and requires claims data submissions, complies with federal law and was upheld in federal court.
The company contends the state law would disrupt the federally administered 340B program and create overlapping enforcement requirements. It also points to federal data showing 340B discounts displaced $6.5 billion in Medicaid rebates in one year, including $4.2 billion borne by the federal government.
Novartis further highlighted the program’s rapid expansion following the 2010 contract pharmacy changes. Between 2010 and 2024, total 340B spending grew from $6.6 billion to $81.4 billion, while the number of contract pharmacy sites increased from 1,300 to about 35,000. The company is seeking injunctive relief and a declaratory judgment to prevent the law from taking effect.
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