None
EN
Big pharma sues to block Illinois drug discount law
['Destiny Devooght']
Courthouse News Service
The drug manufacturers argue the state law is preempted by a federal law requiring them to sell certain drugs at discounted rates for non-profit hospitals and clinics.
(CN) — A group of pharmaceutical companies sued Illinois Attorney General Kwame Raoul to block a state law requiring the drug giants to send discounted drugs to any and all pharmacy providers.
Drug manufacturers are required to participate in the 340B program and its price controls in order to have their drugs covered by Medicaid and Medicare Part B.
Although the federal law doesn’t mention commercial pharmacies, the Illinois law specifically states drug manufacturers cannot restrict, deny or otherwise interfere with the contractual relationship between covered entities and for-profit pharmacies.
Novartis Pharmaceuticals made a nearly identical argument in its own complaint, asserting that HB 2371 cannot coexist with federal law.