Pharma giants sue Illinois to halt law forcing 340B discounts to all pharmacies
Major drug makers have filed a federal lawsuit against Illinois Attorney General Kwame Raoul, seeking to block a state law that requires them to provide 340B-priced medicines to any pharmacy linked to covered hospitals.
A group of pharmaceutical companies, including AbbVie, Novartis, Allergan and Durata Therapeutics, have lodged a complaint in Illinois federal court to stop Attorney General Kwame Raoul from enforcing a new state law that compels manufacturers to deliver 340B-priced drugs to any pharmacy serving covered hospitals and clinics. The legislation, HB 2371, was signed by Governor JB Pritzker and expands the federal 340B program by prohibiting manufacturers from limiting contracts with for-profit pharmacies or collecting data from covered entities.
Plaintiffs argue the rule imposes unjust financial strain, reduces revenue, and allows commercial pharmacies and third-party administrators to profit from the discount without serving needy patients. They assert the statute conflicts with federal law and violates the Constitution's supremacy clause, seeking a court order to block its implementation. The complaint also alleges that covered entities misuse 340B profits for unrelated ventures such as naming-rights deals and real-estate projects. Neither side was reachable for comment at press time.
Why it matters
The case could reshape how discounted drug programs interact with state laws, affecting drug pricing and access nationwide.
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