Court Rules in Favor of Drugmakers in 340B Contract Pharmacy Case

The United States Court of Appeals for the D.C. Circuit ruled Tuesday in favor of Novartis and United Therapeutics in a case regarding 340B contract pharmacies.

The drugmakers sued the Health Resources and Services Administration (HRSA) to enforce requirements that the manufacturers honor 340B contract pharmacy arrangements. Although the court found that manufacturers could impose some limits on contract pharmacy arrangements, it clarified that more onerous conditions might not be lawful. 

A similar case is pending in the Seventh Circuit, while the Third Circuit Court of Appeals recently sided with manufacturers in another similar case. Should the Seventh Circuit find in HRSA’s favor, the circuit split would have to be resolved by appeal to the U.S. Supreme Court. 

ASHP remains committed to safeguarding the 340B Drug Pricing Program and has released model legislation, with 340B Health, that states can use to protect contract pharmacy arrangements. We will continue to keep our members informed regarding ongoing 340B litigation and our aggressive advocacy efforts to safeguard this critical program for our members and the patients they serve.