Bass, Berry & Sims attorney Jeff Davis discussed challenges to the 340B Drug Discount program that the industry will be watching closely in 2026. The first challenge relates to the December 29 preliminary injunction granted by a district court to prevent the 340B Rebate Pilot Program from starting on January 1, 2026. Jeff co-authored content about the 340B injunction available here.
The second relates to states passing laws protecting a provider’s use of 340B contract pharmacy arrangements. Drug manufacturers have challenged these laws claiming they are preempted by federal law. However, most courts have sided with the states in these lawsuits. “We’re going to keep watching those to see if that trend continues in terms of most federal courts upholding the state laws,” Jeff said.
Broadly speaking, Jeff added “Thematically, what we’re watching in these cases is how courts will weigh in on the future of the program, in terms of the ability of safety net providers to access the benefit that Congress intended for them to receive.”
The full article, “Drug Pricing Battles To Watch In 2026,” was published by Law360 on January 2 and is available online.