AstraZeneca, one of the world’s largest pharmaceutical companies, has filed a federal lawsuit against Utah Attorney General Derek Brown and Insurance Commissioner Jon Pike, challenging a recently enacted state law that expands access to discounted prescription drugs.
The lawsuit, filed last month in U.S. District Court, seeks to overturn Senate Bill 69 (SB69), which went into effect following passage in Utah’s latest legislative session. Sponsored by Sen. Evan Vickers (R-Cedar City), the law aims to prevent pharmaceutical companies from restricting where hospitals, clinics, and pharmacies—especially those participating in the federal 340B Drug Pricing Program—can purchase discounted medications.
In its filing, AstraZeneca calls SB69 “unconstitutional,” arguing that it interferes with federal authority and infringes on the company’s rights. The pharmaceutical giant contends that the law unlawfully dictates how manufacturers must engage with 340B-covered entities, potentially disrupting national supply chain frameworks.
The 340B Program, established by Congress in 1992, allows certain healthcare organizations serving vulnerable populations to acquire outpatient drugs at significantly reduced prices. While the program is intended to stretch federal resources and improve access to care, critics claim pharmaceutical companies have increasingly tried to control how and where covered entities can obtain the discounted drugs.
Supporters of SB69 say the legislation was necessary to counter such restrictions. “Hospitals and clinics that serve our underserved communities shouldn’t be boxed into unfair purchasing agreements by major drug companies,” said Sen. Vickers. “This bill ensures they have the freedom to buy affordable medications through legitimate, cost-saving channels.”
Utah joins a growing number of states exploring legislation to protect access to discounted drugs amid a nationwide debate over the scope and enforcement of the 340B program.
Legal experts suggest the case could set a precedent for state-level regulation of drug pricing practices in relation to federal healthcare programs. A hearing date has not yet been scheduled.
