AstraZeneca Pharmaceuticals is suing Louisiana Attorney General Jeff Landry in federal court, alleging a state law that took effect Aug. 1 interferes with federal policies governing pricing caps on certain outpatient medications.
The lawsuit was filed Aug. 4 in the Western District of Louisiana in the wake of Louisiana’s Act 358 taking effect. That law mandates that drug companies offer discount pricing that’s part of a federally administered prescription medicine program to an unlimited number of contract pharmacies.
But AstraZeneca said federal case law has determined that the company’s policy of limiting the number of pharmacy arrangements in the federal 340B Drug Pricing Program to a single covered health care entity working with underserved populations under the pricing program.
“AstraZeneca remains strongly committed to the 340B Program and to ensuring that any patient prescribed an AstraZeneca product has access to that medicine,” an AstraZeneca spokesperson said in a statement emailed to the Louisiana Record. “AstraZeneca’s products have been -- and will continue to be -- available to all covered entities at or below applicable statutory ceiling prices through either their own on-site dispensing pharmacy or a designated contract pharmacy.”
The Louisiana Attorney General’s Office did not respond to a request for comment, but AstraZeneca says in its legal complaint that the Louisiana law imposes “massive new financial obligations on program participants” and violates the U.S. Constitution’s supremacy clause by injecting state authority into a congressionally approved program.
“AstraZeneca maintains that its approach to contract pharmacy arrangements fully complies with all operative requirements, which was validated by the (U.S. Court of Appeals for the) Third Circuit’s decision earlier this year,” the spokesperson said.
The Western District of Louisiana court last week granted Landry a time extension to respond to the lawsuit. Landry now has until Sept. 19 to file a response, according to a judge’s order.
AstraZeneca argues that allowing an unlimited number of pharmacy contracts under the 340B Program causes financial benefits intended for needed recipients to be siphoned off to pharmacy chains such as CVS, Walgreens, Walmart, Rite-Aid and Kroger.
The pharmaceutical company’s complaint asked that Landry be enjoined from attempting to enforce Act 358, making investigative demands or filing lawsuits seeking civil penalties under the law. The company is also asking for reimbursement of reasonable attorney fees and costs.