Pharmaceutical Giants Sue Washington Over Drug Pricing Law

Novartis and AbbVie claim new 340B transparency rules will cost them millions

Mar. 30, 2026 at 6:38pm

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Two major pharmaceutical companies, Novartis and AbbVie, have filed federal lawsuits against the state of Washington over a new law aimed at increasing transparency in the federal 340B drug pricing program. The companies argue the law, which prohibits them from restricting which pharmacies can dispense their medications, will result in significant financial losses.

Why it matters

The 340B program requires drug manufacturers to provide steep discounts to certain safety-net healthcare providers, which then use the savings to expand care for low-income and uninsured patients. Pharmaceutical companies have long argued that hospitals and pharmacies abuse the program to boost profits, while providers say the discounts are crucial for supporting vital services. This legal battle reflects the ongoing tensions over the 340B program's future.

The details

Washington's new law, signed by Governor Bob Ferguson, seeks to add transparency to the 340B program and prevent drug makers from restricting which pharmacies can distribute their medications. Novartis and AbbVie have now sued the state, claiming the law will cost them tens of millions in 'unrecoverable discounts' and violates federal law. Similar laws in other states have been upheld by federal courts, but pharmaceutical companies have also successfully sued to block restrictions on their ability to limit 340B pharmacy networks.

  • The new Washington law takes effect in June 2026.
  • The lawsuits were filed on the same day the governor signed the legislation.

The players

Novartis

A major pharmaceutical company that manufactures drugs like Entresto and Cosentyx.

AbbVie

A pharmaceutical giant known for producing Humira and Skyrizi to treat autoimmune diseases.

Bob Ferguson

The Democratic governor of Washington who signed the new 340B transparency law.

Nick Brown

The Washington state attorney general whose office is reviewing the lawsuits filed by Novartis and AbbVie.

Moses Lake Community Health Center

A healthcare provider that uses 340B savings to cover the cost of care for patients with chronic diseases and support mental health services.

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What they’re saying

“If Novartis is forced to comply with the law, it will lose millions of dollars annually by providing additional 340B discounts not required by federal law, as well as the administrative costs of compliance.”

— Novartis

“This will allow the state to have more insight into improving the program to ensure it supports providers while, most importantly, protecting consumers.”

— Bob Ferguson, Governor of Washington

What’s next

The state of Washington has not yet formally responded to the lawsuits filed by Novartis and AbbVie. The attorney general's office is reviewing the filings, and the legal battle over the new 340B transparency law is expected to continue.

The takeaway

This dispute highlights the ongoing tensions between pharmaceutical companies and healthcare providers over the 340B drug pricing program. While the new Washington law aims to increase transparency and protect patient access, drug makers argue it will result in significant financial losses for them. The outcome of this legal battle could have broader implications for the future of the 340B program nationwide.