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States across the country have passed legislation pushing back against Big Pharma’s 340B restrictions that harm patients and providers. Drugmakers, in turn, have turned to the federal court system in another attempt to preserve their profits. On Feb. 9, the U.S. Court of Appeals for the Fifth Circuit upheld a lower court decision that sustained Louisiana’s 340B contract pharmacy law, one of the first of several state laws protecting the federal 340B program.

Louisiana’s Act 358 says drugmakers cannot withhold 340B pricing for drugs dispensed through community pharmacies when those same discounts would apply if the drugs were provided through a hospital’s in-house pharmacy. The appeals court panel unanimously rejected Pharma’s claims that Act 358 violates the U.S. Constitution. It noted that regulating pharmacies and drug distribution has long been a state responsibility, and Act 358 is well within that established authority.

Last fall, the Fifth Circuit also upheld a lower court ruling that refused a drugmaker request to halt enforcement of Mississippi’s law safeguarding 340B pricing in pharmacy contracts. The Eighth Circuit in 2024 upheld the constitutionality of Arkansas’ 340B law.

Recent high court rulings add to the growing momentum around restoring 340B. Earlier this month, nearly 1,000 people gathered to celebrate 340B for giving low-income and uninsured individuals to access affordable prescription drugs and healthcare services such as chronic disease management, behavioral health, and mammograms.

Stand with hospitals and Federally Qualified Health Centers: Pass House Bill 2371 SA 2 to protect 340B in Illinois—at NO cost to taxpayers and with NO budget appropriation needed. Learn more.