Appeals Court Upholds Block on West Virginia Contract Pharmacy Law (1)

A federal appeals court rejected West Virginia’s bid to reverse a lower court’s decision that temporarily blocks the state’s contract pharmacy law.

In their opinion, Circuit Judges Julius N. Richardson and Allison Jones Rushing of the US Court of Appeals for the Fourth Circuit on Tuesday affirmed a district court decision granting a preliminary injunction. The district court found that federal law likely preempts West Virginia from regulating how manufacturers can distribute drugs under a federal discount program known as 340B.

Under the 340B program, drug manufacturers are required to offer discounts on drugs to covered entities, including qualifying ...