Novartis Sues Over Maryland Drug Pricing Law

Novartis Sues Over Maryland Drug Pricing Law

Vie, May 31st 2024

Novartis has filed a lawsuit in the USA against Maryland’s new law requiring drug price cuts for certain pharmacies, citing federal law violations.

KEYSTONE/Georgios Kefalas

Novartis has filed a lawsuit in the USA against a Maryland state law that obliges pharmaceutical companies to sell drugs at a reduced price to certain pharmacies. According to Novartis, the law violates a federal law on drug rebates, as reported by Reuters and Bloomberg on Thursday. The pharmaceutical company filed the complaint with a federal court in Baltimore on Wednesday.

The law, which is due to come into force at the beginning of July, mandates pharmaceutical companies to grant discounts to pharmacies that supply hospitals for low-income populations. Novartis argues that including contract pharmacies leads to a lack of transparency, increasing the likelihood of improper discounts.

Besides Maryland, other US states like Kansas, Mississippi, and West Virginia have enacted similar laws to protect contract pharmacies.

©Keystone/SDA

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