Novartis Pharmaceuticals Corporation v. Johnson et al.

Docket No.
21-5299
Appellate Court
District of Columbia

Goal

  • Declaration that contract pharmacy policies are fully compliant with the 340B statute
  • Invalidate all or part of a federal regulation

Issues

Litigation Content

Why this Matters
The plaintiff argues that certain agency enforcement and regulatory actions requiring drug manufacturers to offer discounted prescription drugs to contract pharmacies under the 340B Drug Pricing Program without the ability to impose any sales conditions violate the Administrative Procedure Act. The growth of the 340B program and practices by certain providers and contract pharmacies have raised concerns about oversight and abuse of the program—to the tune of billions of dollars.

Potential Impact
Requiring drug manufacturers to offer discounted prescription drugs to certain contract pharmacies under the 340B Drug Pricing Program would remove one avenue to combatting potential abuse of the program.