Drug Lobby Dealt Setback Over Arkansas Contract Pharmacy Law (1)

An Arkansas law prohibiting drugmakers from refusing to supply discounted drugs to certain pharmacies is constitutional, a federal appeals court ruled Tuesday.

The US Court of Appeals for the Eighth Circuit held that Arkansas’ Act 1103 is not preempted, a decision that allows the state to continue enforcing its law that prohibits drugmakers from cutting off contract pharmacies taking part in a federal discount drug program.

“Pharmacy has traditionally been regulated at the state level, and we must assume that absent a strong showing that Congress intended preemption, state statutes that impact health and welfare are not preempted,” Judge Michael ...