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340B Contract Pharmacy Confusion: Another US Court Sides With Pharma, States Enact Roadblocks

 
• By Cathy Kelly

The DC Circuit Court agrees with an earlier appeals court ruling that the law does not prohibit manufacturers from setting the terms of their 340B outpatient drug discounts to contract pharmacies.

The Ruling Further Undercuts HRSA's Position On Contract Pharmacies. • Source: Shutterstock

The US Court of Appeals for the District of Columbia concluded Novartis AG and United Therapeutics Corporation did not violate the 340B outpatient drug discount program law by imposing restrictions on pharmacies dispensing drugs under contract with hospitals and other health care providers participating in the program.

The decision issued 21 May affirms a lower court decision in favor of the drug companies and against the US Health and Human Services Department and the Health Resources and...

Key Takeaways

  • The US appeals court for the District of Columbia affirms that drug companies may impose restrictions on the 340B discounts they provide to contract...

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