AbbVie Files Suit Challenging Tennessee’s Contract Pharmacy Law

Tennessee is facing a lawsuit from AbbVie challenging the applicability of a recently passed law that regulates how drugmakers contract with pharmacies in the state.

The Chicago-based pharmaceutical giant and maker of blockbuster autoimmune treatment Humira filed a lawsuit Tuesday in the US District Court for the Middle District of Tennessee. The company alleges the state’s recently passed SB 1414, which requires AbbVie to transfer its federally required discounted pharmaceutical products to certain commercial pharmacies or risk criminal penalties, violates the drugmaker’s constitutional protections.

Under the federal 340B program, drugmakers are required to discount drugs for covered entities, such ...