A Mississippi federal judge has denied a request from Novartis Pharmaceuticals and the Pharmaceutical Research and Manufacturers of America for a preliminary injunction against state enforcement protecting 340B pricing for contract pharmacies.
The 340B drug pricing program allows qualifying hospitals and clinics that treat low-income and uninsured patients to purchase some drugs at a discounted rate.
Enrollment in the 340B program has drastically increased in recent years, driving up spending and leading to more disputes between covered entities who need to obtain affordable medications for uninsured or underinsured patients and drugmakers who need to protect company profits and resources.
The drugmakers argued that the state's enforcement of 340B protections in H.B. 728 conflicts with the federal goals of the 340B program.
"Because H.B. 728 does not purport to lower prices on any drugs not already discounted under Section 340B, it does not substantially interfere with the incentives created by patent laws or other federal laws establishing regulatory exclusivities," U.S. District Judge Halil Ozerden wrote in the ruling. "The Court therefore does not find that Plaintiff has shown a substantial likelihood of success on the merits of its preemption claim based on federal regulatory exclusivities."
The American Hospital Association had filed an amicus brief in support of the state's law, citing that "contract pharmacy arrangements are especially important because fewer than half of 340B hospitals operate in-house pharmacies …" and "340B hospitals typically must contract with at least one specialty pharmacy to receive the 340B discount for their patients' high-priced specialty drugs."
"We continue to believe Mississippi House Bill 728 violates the U.S. Constitution while doing nothing to lower costs for patients," Nicole Longo, PhRMA spokesperson, shared with Becker's.
Becker's also reached out to Novartis for comment and will update this story should new information become available.