Novartis, United Therapeutics Defeat US on Discount Drug Limits

Drugmakers notched a victory against the US Tuesday when the D.C. Circuit said a federal discount drug program doesn’t curb their ability to limit legally mandated deliveries of steeply discounted drugs to contract pharmacies.

Drugmakers like Novartis Pharmaceuticals Corp. and United Therapeutics Corp. are obligated to participate in the Public Health Act’s Section 340B program as a condition of their participation in Medicare Part B and Medicaid. The statute’s silence on whether they can limit the number and kinds of contract pharmacies where they ship orders, however, can’t plausibly be interpreted to subject them “to whatever delivery conditions any covered ...