A U.S. District Court has dismissed three complaints filed by pharmaceutical manufacturers challenging a 2025 amendment to South Dakota law.
The Attorney General’s Office says the amendment restricts pharmaceutical manufacturers from controlling key contract terms related to how discounted or generic medications are delivered to eligible healthcare providers, especially those serving rural, Native American and other underserved populations under the federal 340B Program. The 2025 South Dakota law bars manufacturers from restricting delivery methods directed by these providers.
Some healthcare providers wanted direct delivery of generic drugs to designated pharmacies. The three companies– AbbVie, AstraZeneca and PhRMA– opposed this practice because it reduced their profits.
Attorney General Marty Jackley says this decision upholds a law intended to ensure that discounted or generic medications reach the individuals who need them most. He says the ruling ensures healthcare providers will have access to these less expensive medications and will be able to use them in ways that best serve their communities.
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