Pharma's 340B Legal Disputes Over Contract Pharmacies May Get A Boost With Chevron Ruling

But the overall impact of the Supreme Court decision may not seem as “immediate” in 340B compared to other federal programs.

Rebalancing The Power Between Executive Agencies And The Judiciary • Source: Shutterstock (Shutterstock)

The Supreme Court’s recent decision to overturn the Chevron doctrine, which means lower courts may no longer defer to federal agencies’ “reasonable” interpretations of ambiguous statutes, could help manufacturers prevail in ongoing lawsuits challenging the participation of contract pharmacies in the 340B drug discount program.

Key Takeaways
  • Supreme Court ruling overturning the Chevron doctrine could help manufacturers prevail in 340B contract pharmacy litigation against the Health Resources and Services Administration.

  • The expected uptick in litigation against federal agencies resulting from the ruling may not seem as rapid in 340B compared to other programs because there is already extensive litigation underway challenging HRSA policies

The decision is also expected to support litigation challenging a range of regulatory actions by the US Food and Drug Administration and in Medicare. (Also see "Deference No More: More Suits Against US FDA Coming After High Court Tosses Chevron Doctrine?" - Pink Sheet, 28 June, 2024

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