Litigation Surge - Biotech & Pharmaceuticals | Government

AbbVie, Allergan and other major drug manufacturers launched a cluster of federal lawsuits last week. At least three cases were filed challenging proposed statutes in Maryland, Mississippi and West Virginia in connection with the federal 340B Drug Pricing Program, which requires manufacturers to offer certain health care providers discounted drug prices. The suits contend that after providers began abusing the program by entering arrangements with 'contract pharmacies' to acquire discounted drugs, sell them to patients at full price and pocket the difference, manufacturers imposed drug delivery conditions to combat the abuse, but the challenged state laws unconstitutionally seek to block those conditions. The suits are backed by several firms including Kirkland & Ellis, King & Spalding and Balch & Bingham.

Biotech & Pharmaceuticals

June 24, 2024, 2:14 PM