Pharma Attack on Drug Distribution Law Tests States’ Clout

A federal appeals court challenge to an Arkansas law governing drug distribution for certain pharmacies will influence whether more states enact similar regulations.

The Pharmaceutical Research and Manufacturers Association, or PhRMA, contends that federal law preempts the Arkansas statute. The US Court of Appeals for the Eighth Circuit is weighing the case after a district court judge rejected that argument.

The legal battle between PhRMA and the Arkansas Insurance Department involves the use of contract pharmacies under Section 340B of the Public Health Service Act—a federal law that requires drugmakers to discount drugs for qualifying hospitals, clinics, and providers that ...