Novartis Sues Maryland Over Pharmacy Law on Drug Discount Limits

A Maryland statute prohibiting drugmakers from imposing delivery restrictions of discounted drugs to certain pharmacies is preempted by federal law, Novartis Pharmaceuticals said in lawsuit.

Novartis in the US District Court for the District of Maryland is suing the state over its recently enacted law (H.B. 1056) requiring manufacturers in the 340B Drug Pricing Program to deliver discounted drugs to pharmacies that contract with providers in the program.

Contract pharmacies are used to dispense discounted drugs to covered entities that don’t have an in-house pharmacy, but drugmakers in recent years have limited or restricted shipments, claiming unlawful practices ...