Novartis has filed a lawsuit seeking to block a Maryland law that requires the company to ship its medicines to any pharmacy working with hospitals participating in a controversial U.S. government drug discount program.
The drugmaker maintained that the state law, which goes into effect on July 1, improperly forces pharmaceutical companies to supply so-called contract pharmacies as part of the discount program known as 340B, according to the lawsuit filed in federal court. Novartis argued the law is illegal because it is preempted by federal law and also violates the U.S. Constitution.
The lawsuit is the latest clash in a long-running battle over the 340B program, which was created to help hospitals and clinics care for low-income and rural patients. To ensure the program achieves this goal, drug companies that want to take part in Medicare or Medicaid must offer their medicines at a discount — typically, 25% to 50%, but sometimes higher — to participating hospitals and clinics.
