Eighth Circuit Rejects Novartis Appeal In 340B Litigation

The U.S. Court of Appeals for the Eighth Circuit upheld the district court’s decision denying an injunction against SB 751, which extends contract pharmacy protections to 340B covered entities. Novartis sought the injunction in the lower court, claiming the statute violates the dormant commerce clause.

The Eighth Circuit agreed with the district court that the manufacturer was unlikely to prevail on the ultimate merits of its claims, as any extraterritorial effect of the statute was negligible and nondiscriminatory toward out-of-state entities. The court also rejected Novartis’ attempt to revisit its previous stance on federal preemption.

The case will be remanded to the district court for further proceedings on the merits.