New Jersey-based pharmaceutical giant Novartis is suing Maine over a state law set to take effect next month, Sept 24.

The law seeks to protect a federal discount drug program, known as 340B, which the pharmaceutical industry increasingly has opposed.

The new state law prohibits the pharmaceutical industry from forcing hospitals and providers to enter into partnerships that do not offer the discount 340B program.

Novartis claims the law is a drastic infringement on powers only given to Congress. The lawsuit claims the Maine law “would turn federalism on its head; states cannot override Congress’s policy choices.” It further claims, “…states are not free to tinker with federal requirements as they see fit.”

Novartis is suing to have the state law overturned in federal court, and is asking to have the state pay its court expenses.

Pharmaceutical companies mostly oppose the 340B drug discount program, saying its ventured out from its original intent, leading to increased costs and misuse of funds.

The federal program allows providers, including hospitals and Federally Qualified Health Centers, to purchase prescription drugs at a discounted price.

But the pharmaceutical industry, including statements by Novartis in its lawsuit, say the providers have no obligation to pass on the savings to their patients, and typically do not.

Maine Attorney General Aaron Frey is named as the defendant in the Novartis lawsuit, which was filed on August 7 in U.S. District Court in Bangor.

The case will be handled by magistrate judge John Nivison after a recusal by Judge John A. Woodcock.