In a recent development, several pharmaceutical companies, including AbbVie, AstraZeneca, Allergan, Durata Therapeutics, Pharmacyclics, and Aptalis Pharma, have filed lawsuits in the U.S. District Court for the District of Minnesota, challenging a Minnesota law that regulates the pricing of medication. The companies are contesting a provision in the law that requires them to restrict, prohibit, or interfere with the delivery of drugs available through a federal program that provides discounted medicines to hospitals treating low-income and uninsured patients.
The drug manufacturers argue that Minnesota lacks the authority to enforce the 340B program or to seize their property without due process. They claim that the policy gives covered entities unrestricted authority to take manufacturers’ property for the benefit of private parties of their choice, which they believe violates both state and federal laws requiring legislation to address a single subject. The companies have asked the court to declare the law unconstitutional and prevent it from being enforced.
Sen. Alice Mann, DFL-Edina, who sponsored the proposal dealing with the 340B program, defended the policy, stating that it was necessary to ensure that drug companies continued to supply affordable medicines after some had limited the pharmacies and hospitals eligible in recent years. Mann also pointed out that other states have taken similar steps to ensure compliance with the federal law and have overcome legal challenges from pharmaceutical companies.
Minnesota Attorney General Keith Ellison, who is set to defend the law against the challenges, expressed confidence in the law’s constitutionality, stating that it is an important and beneficial program. Ellison also noted that the pharmaceutical industry’s actions are typical, as they often attempt to increase prices at the expense of people’s health.
