Court Upholds Arkansas 340B Contract Pharmacy Law

The U.S. Court of Appeals for the Eighth Circuit upheld an Arkansas law that prohibits manufacturers from imposing restrictions or limitations on 340B covered entities and contract pharmacies. Pharmaceutical manufacturers challenging the law are likely to appeal, but the ruling is a step in the right direction to safeguard covered entities from attempts to undercut the 340B Drug Pricing Program. 

ASHP has developed model state legislation focused on pharmacy benefit manager nondiscrimination. To date, 28 states have or are considering passing similar legislation. The court’s decision today may bolster ongoing state efforts to pass legislation prohibiting manufacturers from imposing restrictions on 340B covered entities and contract pharmacies. 

“Today’s decision is an important victory for patients and safety net providers,” said Tom Kraus, ASHP vice president of government relations. “The court’s ruling rightfully affirms the ability for states to bridge regulatory gaps that are not addressed in federal law and states’ ability to regulate drug distribution and the practice of pharmacy.”