⚖ Oral Arguments, with Context

The Fourth Circuit hears a dispute over discounted medicines and delivery to outside pharmacies. The federal 340B program requires participating manufacturers to offer covered drugs at discounted prices to eligible hospitals and clinics, called covered entities. These include qualifying public and private nonprofit hospitals. A covered entity may arrange for outside pharmacies to dispense drugs to its patients; these are contract pharmacies. The discount is on the provider's purchase, not a promise that every patient pays that same price. Manufacturers imposed restrictions on deliveries to contract pharmacies. Maryland responded with House Bill 1056, prohibiting manufacturers from restricting delivery to a covered entity's contract pharmacy unless federal authorities prohibit receipt. AbbVie, Novartis and the industry group PhRMA challenged the law. The federal district court refused to block it while the litigation proceeded. The appeals are now being reheard en banc, before a larger group of Fourth Circuit judges rather than the usual three. Erin Murphy represents PhRMA; Matthew Owen represents AbbVie. They will argue that Maryland is rewriting a federal bargain it has no authority to change. Ryan Dietrich represents Maryland and will defend its authority to regulate drug delivery where federal law leaves room for state action. AbbVie also invokes the Takings Clause, which requires compensation when government takes private property for public use. Another question is whether these program disputes must instead go through federal administrative procedures.

AbbVie, Inc. v. Anthony Brown (No. 24-1939) — U.S. Court of Appeals for the Fourth Circuit, argued October 27, 2026.