A federal judge has dismissed AbbVie’s constitutional challenge to Tennessee’s Hospital Protection Act, siding with the state’s argument that the law does not conflict with federal drug pricing regulations under the 340B program.
AbbVie filed the lawsuit May 6, 2025, seeking to block enforcement of the law, which was signed May 5, 2025. Portions of the statute took effect immediately; others became effective July 1, 2025. The law bars drugmakers from limiting contract pharmacy access for 340B-covered entities and prohibits imposing certain data and audit requirements beyond what is required by federal law.
AbbVie argued the statute violated multiple constitutional provisions, including the Supremacy Clause, Takings Clause, Commerce Clause and First Amendment. The company claimed the law would force sales under conditions not required by the federal 340B statute and sought to restrict its distribution of discounted drugs to contract pharmacies.
The U.S. District Court for the Middle District of Tennessee previously denied AbbVie’s motion for a preliminary injunction. In a Feb. 26 ruling, the court granted the state’s motion to dismiss, rejecting claims of preemption and finding AbbVie failed to show a credible threat of enforcement against its grandfathered policy. The court also noted that Tennessee’s law mirrors those in more than 20 other states and does not expand the federal 340B program beyond its statutory scope.
The case comes amid growing federal scrutiny of state 340B contract pharmacy laws. In a separate Feb. 25 brief, the Justice Department supported AbbVie in its appeal of a similar Colorado law, arguing it is preempted by federal statute and unlawfully interferes with the 340B program’s oversight by HHS.
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