Drugmakers Win Bid to Block North Dakota 340B Pharmacy Law

A federal court sided with manufacturers in their bid to stop a North Dakota law that regulates how drugmakers contract with pharmacies in the state.

Judge Daniel M. Traynor from the US District Court for the District of North Dakota on Monday wrote that North Dakota’s HB 1473, which imposes criminal penalties on drugmakers that apply restrictions on how pharmacies can acquire federally discounted drugs, was preempted by section 340B of the Public Health Service Act.

Under the federal 340B program, drugmakers are required to discount drugs for covered entities, such as qualifying hospitals and clinics, that treat a disproportionate ...