AstraZeneca Sues Utah Attorney General Over Controversial Drug Pricing Law
AstraZeneca has initiated legal action against Utah’s Attorney General Derek Brown, challenging the constitutionality of a newly enacted state law, SB69, which permits pharmacies to offer significantly lower drug prices. Filed in May in the U.S. District Court of Utah, the lawsuit asserts that SB69 infringes upon federal law by expanding the scope of the 340B drug discount program beyond its original limits.
The 340B program, designed to provide discounted drug prices to specific healthcare entities, mandates pharmaceutical manufacturers offer steep price reductions only to a defined group of providers. AstraZeneca contends that SB69 allows unlimited pharmacies to participate in this pricing scheme, ultimately undermining the purpose of the 340B program. The company argues that the law disrupts market stability and discourages pharmaceutical innovation by imposing extensive price controls.
Moreover, the lawsuit highlights that the federal program does not include for-profit pharmacy chains such as CVS and Walgreens among its covered entities. AstraZeneca’s claims suggest that SB69 effectively mandates manufacturers to sell drugs at dramatically reduced rates to any pharmacy affiliated with a 340B entity, a requirement the case cites as illegal under federal law.
In its court filing, AstraZeneca seeks a judicial declaration that SB69 violates both federal drug pricing laws and the U.S. Constitution, particularly the Contracts and Takings Clauses. The Utah Attorney General’s Office has yet to comment on the ongoing legal proceedings.
Senator Evan Vickers, who sponsored SB69, claims the law is essential for improving access to affordable medications in the state. However, the lawsuit underscores a significant legal battle over the balance between state legislation and federal pharmaceutical regulations.
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