Novartis Calls Oregon Drug Discount Law Unconstitutional in Suit

Novartis Pharmaceuticals Corp. is suing Oregon over a drug pricing law it says forces drugmakers into providing sprawling discounts.

Oregon’s H.B. 2385 blocks drugmakers from interfering with pharmacies acquiring drugs discounted through the federal government’s 340B drug discount program. Novartis, however, says the law forces companies “to do what the federal courts found Congress intentionally gave manufacturers the power to choose not to do: recognize unlimited contract-pharmacy arrangements” for acquiring steeply discounted drugs.

“To do this is to sweep ordinary drug sales that would otherwise occur outside the 340B Program into the program’s ambit,” Novartis said in its Tuesday ...