Court upholds Arkansas' 340B Drug Pricing Nondiscrimination Act against constitutional challenge by Pharmaceutical Research and Manufacturers of America; court rules the Federal Food, Drug, and Cosmetic Act does not preempt the state law

The U.S. Court of Appeals for the 8th Circuit March 12 upheld Arkansas’ 340B Drug Pricing Nondiscrimination Act against a constitutional challenge brought by the Pharmaceutical Research and Manufacturers of America, ruling that the Federal Food, Drug, and Cosmetic Act does not preempt the state law. The Arkansas law (Act 1103) prohibits drug company policies that restrict provider access to 340B discounts through community and specialty pharmacy partners. In a friend-of-the-court brief filed in the case last year, AHA argued that the Arkansas statute does not conflict with federal law, but rather supports and complements the 340B program. The court agreed.

“Act 1103 does not create an obstacle for pharmaceutical manufacturers to comply with 340B, rather it does the opposite: Act 1103 assists in fulfilling the purpose of 340B,” the opinion states. “…Arkansas is simply deterring pharmaceutical manufacturers from interfering with a covered entity’s contract pharmacy arrangements. There is no obstacle for pharmaceutical manufacturers to comply with both Act 1103 and Section 340B.”