MINNEAPOLIS — A lawsuit by AstraZeneca Pharmaceuticals seeks to have a Minnesota law related to drug prices declared unlawful, saying the state went against federal law in its effort to lower drug prices.
The suit filed earlier this month relates to part of the federal Public Health Service Act known as Section 340B. The section says manufacturers must offer their products to a certain list of entities at a discounted rate. The suit states that for-profit chain pharmacies like CVS and Walgreens are not covered by Section 340B.
But, the lawsuit alleges, a new Minnesota statute requires manufacturers like AstraZeneca to make Section 340B-discounted drugs available to all pharmacies under contract with a covered entity. This means Minnesota is extending Section 340B's price caps beyond the scope of the federal program, the lawsuit alleges, vastly expanding discounts.
"This expansion of the 340B program under state law directly conflicts with federal law," the lawsuit states.
According to the lawsuit, price controls can disincentivize innovation and destabilize markets.
AstraZeneca is not the only pharmaceutical manufacturer taking Minnesota Attorney General Keith Ellison to federal court over the state statute. Abbvie, among other corporations, also alleges in its own suit that the expansion of Section 340B is unconstitutional.
A spokesperson with Attorney General Ellison's Office said in a statement to KARE 11, “The Attorney General has a duty to defend statutes, and plans to vigorously defend this one in court.”
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