Pharmacy giant sues South Dakota over law to protect rural hospitals

AstraZeneca argues that Legislature, Gov. Larry Rhoden violated U.S. Constitution, federal law

A pharmaceutical giant has filed suit against the state of South Dakota, alleging that a bill passed by the Legislature and signed by Gov. Larry Rhoden this year violated federal law.

AstraZeneca has joined fellow pharmaceutical company AbbVie in suing the state over the passage of Senate Bill 154 this year. That bill barred pharmaceutical manufacturers from prohibiting pharmacies from participating in a program that reduces the prices of some drugs.

AstraZeneca is a global pharmaceutical company that had $54.1 billion in revenue last year. The company hopes to launch 20 new medicines in a host of areas and generate $80 billion in annual revenue by 2030.