Supreme Court Declines to Review PhRMA’s Challenge to Arkansas’ 340B Contract Pharmacy Law

Arkansas Act 1103:
The law, enacted in 2021, prohibits drug manufacturers from restricting 340B covered entities in Arkansas from accessing 340B pricing when using contract pharmacies to distribute 340B drugs2 4.

PhRMA's Challenge:
PhRMA sued Arkansas, arguing that Act 1103 is unconstitutional because it is preempted by the 340B statute and the Federal Food, Drug, and Cosmetic Act (FDCA)1 2.

Eighth Circuit Ruling:
The U.S. Court of Appeals for the Eighth Circuit upheld the Arkansas law, finding that it does not create an obstacle for pharmaceutical manufacturers to comply with 340B and instead assists in fulfilling the purpose of 340B3 4.

Supreme Court Decision:
The Supreme Court declined to review PhRMA's appeal, effectively upholding the Eighth Circuit's ruling and allowing Arkansas to enforce its law[Query].

Implications:
The decision could embolden other states to enact similar laws, potentially expanding the use of contract pharmacies in the 340B program and affecting drug pricing and distribution4 5.