Press Release

PhRMA Litigation Challenging Constitutionality of Provisions in Arkansas Act 1103

WASHINGTON, D.C. (September 29, 2021) – Today, the Pharmaceutical Research and Manufacturers of America (PhRMA) filed a complaint in the U.S. District Court for the Eastern District of Arkansas challenging provisions in Arkansas Act 1103 that seek to require manufacturers to provide federal 340B program pricing to Arkansas-based pharmacies contrary to federal statute.

PhRMA Executive Vice President and General Counsel James C. Stansel stated:

“The 340B pricing mandate provisions of Arkansas Act 1103 violate both the Supremacy and Commerce clauses of the U.S. Constitution because they impermissibly clash with the statutory requirements of the federal 340B program. This misguided state mandate places requirements on manufacturers that directly conflict with the federal 340B statute and attempts to regulate commercial transactions that occur outside of Arkansas.

“Whether the 340B statute requires manufacturers to ship 340B medicines to an unlimited number of contract pharmacies is the subject of numerous lawsuits pending in federal district courts across the country. Despite the ongoing legal activity at both the federal agency and in the federal courts, Arkansas has proceeded with this questionable state law that has serious constitutional defects. Act 1103 is preempted by federal law and should be declared unconstitutional.”

View the full complaint and a summary here.

About PhRMA

The Pharmaceutical Research and Manufacturers of America (PhRMA) represents the country’s leading innovative biopharmaceutical research companies, which are devoted to discovering and developing medicines that enable patients to live longer, healthier and more productive lives. Since 2000, PhRMA member companies have invested more than $1 trillion in the search for new treatments and cures, including $91.1 billion in 2020 alone.

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