Novartis pharmaceutical company sues Maine over new state law

(WMTW) – Novartis, a New Jersey pharmaceutical company, has filed a lawsuit against the state of Maine.

Supporters of the law, originally introduced as LD 1018 and enacted as part of the biennial budget in June, say it seeks to protect the federal 340B Drug Pricing Program in Maine.

“I introduced this law because all Mainers — especially low-income patients in rural and underserved areas — deserve access to quality, affordable health care,” said Sen. Donna Bailey, a sponsor of the bill. “Now, Big Pharma is trying to undo our work and increase their own profits at the expense of health care providers and the patients who rely on these essential cost-saving programs. I am hopeful and confident that our efforts to lower the cost of care for Maine people will be upheld.”

The federal program helps safety net providers — such as Federally Qualified Health Centers and nonprofit hospitals — purchase prescription drugs at a discounted price.

The new Maine law, set to take effect on Sept. 24, prohibits the pharmaceutical industry from forcing hospitals and FQHCs to enter into partnerships that do not offer the 340B program. However, Novartis alleges the law is overreaching federal authority.

“The overwhelming federal nature of this subject is apparent,” the lawsuit alleges. “States are not free to tinker with federal requirements as they see fit.”

In response, Maine hospital groups have expressed support for the law.

“We believe Maine’s law is sound and we’re confident it will survive challenge as these laws have been upheld in Arkansas, Mississippi, Louisiana (the model for our law – though not exactly) and many other states,” Jeffrey Austin, vice president of government affairs and communications for the Maine Hospital Association, said in a statement. ”We will oppose efforts by Pharma to discriminate against our pharmacy partners, particularly the smaller, local pharmacies that are disproportionately harmed by discrimination.”

“Ongoing attempts to dismantle the 340B Program through litigation do nothing but boost the profits of large, global drug manufacturers like Novartis — at the expense of patient care here in Maine,” Bryan Wyatt, chief public affairs officer for the Maine Primary Care Association, said in a statement. “We will continue to fight to protect this vital program for the patients and providers who depend on it.”

The lawsuit was filed in the Maine district court against Maine Attorney General Aaron Frey. A spokesperson for his office declined to comment due to pending litigation.

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