Washington, D.C. – Powers Pyles Sutter & Verville PC represented the Missouri Hospital Association and the Missouri Primary Care Association as intervenors before the U.S. Court of Appeals for the Eighth Circuit in Novartis Pharmaceuticals Corp. v. Hanaway, in which the court upheld Missouri’s Senate Bill 751 (“S.B. 751”), requiring manufacturers to deliver 340B drugs to all contract pharmacies serving Missouri covered entities.
Before filing suit, Novartis Pharmaceuticals Corporation (“Novartis”) adopted a policy limiting distribution of its 340B medications to either a covered entity’s in-house pharmacy or a single outside contract pharmacy—a policy that conflicted with S.B. 751. In its August 2024 complaint, Novartis challenged the constitutionality of the law under the dormant Commerce Clause and federal preemption doctrines, seeking declaratory and injunctive relief.
The U.S. District Court for the Western District of Missouri denied Novartis’ motion for a preliminary injunction, concluding that Novartis had not demonstrated a likelihood of success on the merits of its claims. The Eighth Circuit affirmed, holding that S.B. 751 does not impermissibly regulate interstate commerce, that any burden on out-of-state manufacturers is outweighed by the law’s benefits to Missouri covered entities and their patients, and that the statute is not preempted by federal law.
To read the full Eighth Circuit opinion, click here.
The Powers 340B team was led by Ronald Connelly, William von Oehsen, and Barbara Straub Williams, with invaluable support from Fernando Montoya and Hannah Hauer. Ronald Connelly argued the case on behalf of the intervenors.
To learn more about Powers’ 340B Drug Pricing Practice, click here.
About Powers Law
Powers Pyles Sutter & Verville (“Powers”) is a Washington, DC-based law firm with national practices in healthcare, education, government relations, Indian tribal governments, and nonprofit law. Powers attorneys and professionals are nationally known for their extensive expertise in their practice areas and their commitment to client service. For more information, visit www.PowersLaw.com.