One item today, and it continues a story from earlier this week. A federal judge in New Mexico declined to block that state’s 340B contract pharmacy law while a manufacturer lawsuit against it proceeds. Nothing from the California Board of Pharmacy, and no pharmacy enforcement actions in this week’s federal bulletins.
A federal judge declines to block New Mexico’s 340B contract pharmacy law
A group of drug manufacturers, AbbVie among them, asked a federal court in New Mexico to stop the state from enforcing its 340B contract pharmacy access law while their lawsuit against it is decided. The court denied that request last week. It also allowed the American Hospital Association, 340B Health, and the American Society of Health-System Pharmacists to file briefs supporting the state. A denial at this stage is not a ruling that the law is valid. It means the law stays in force while the case is litigated, and it follows similar outcomes in several other states where manufacturers have asked for the same relief. One detail matters before anyone treats New Mexico as a model: its law reaches federally qualified health centers only, which is narrower than what Arkansas and other states have passed. California has no statute requiring a manufacturer to ship 340B drugs to a contract pharmacy. What California pharmacies do have is Business and Professions Code section 4126, which allows a covered entity to contract with a pharmacy for 340B dispensing and then places two standing duties on that pharmacy: 340B stock must be separated from other drug stock by physical or electronic means, and records of acquisition and disposition must be retrievable separately from the pharmacy’s other records. The contract itself is available for inspection by Board staff during normal business hours. Read more at National Law Review →
This update is general information about developments in pharmacy law and regulation. It is not legal advice, it does not create an attorney-client relationship, and it should not be relied on as a substitute for advice about your own situation. Prior results do not guarantee a similar outcome. If you have a specific question about your pharmacy, call or write and we will talk about it properly.
Law Office of Bhavesh Desai | Bhavesh Desai, Pharm.D., Esq.
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