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Third Circuit Rules Drug Manufacturer 340B Contract Pharmacy Restrictions Are Legal

Federal

Issue

The U.S. Court of Appeals for the Third Circuit unanimously ruled that manufacturer restrictions on 340B contract pharmacy access are lawful and HRSA’s policy prohibiting them is unlawful. 18 manufacturers now restrict contract pharmacy access.

Devastating for FQHCs without in-house pharmacies who rely on contract pharmacy arrangements for 340B savings. Combined with the rebate pilot court-ordered pause and expanded audit requirements, 340B contract pharmacy revenue faces pressure from three directions.

Sources for this story

Bass Berry & Sims

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FQHC Talent. (2026, January 30). Third Circuit Rules Drug Manufacturer 340B Contract Pharmacy Restrictions Are Legal. Source: Bass Berry & Sims. Retrieved October 6, 2026, from https://www.fqhctalent.com/intel/third-circuit-340b-contract-pharmacy-restrictions-legal

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