4th Circuit upholds block on West Virginia’s 340B law

The U.S. Court of Appeals for the 4th Circuit March 31 upheld a preliminary injunction issued by the U.S. District Court for the District of West Virginia blocking the state from enforcing S.B. 325, its law requiring drug companies to provide access to 340B drug discounts to purchases through contract pharmacies. PhRMA and drug manufacturers had sued in December 2024 to enjoin the law. This decision is at odds with earlier rulings from the U.S. Courts of Appeals for the 5th and 8th Circuits upholding similar laws in Louisiana and Arkansas, respectively, and the overwhelming majority of federal courts to have reviewed the legality of these laws. 

The AHA filed amicus briefs in support of West Virginia in both the district court and circuit court.

AHA General Counsel Chad Golder stated, “This decision screams out for rehearing by the full Fourth Circuit. As the dissenting judge correctly points out, the majority rests its decision on arguments that the parties never made. It invents new theories of preemption that lack any basis in the law. It conflicts with the decisions of courts across the country. And it is wrong. We look forward to it being overturned.”