A court ruling this week in favor of Gilead Sciences could significantly impact a burgeoning class of health programs in the U.S. that federal authorities say are illegally importing medications from overseas.
Last year, a CNBC investigation found that these programs — called alternative funding programs, or AFPs — were becoming more pervasive around the country as drug costs skyrocket. Yet U.S. authorities say AFPs import the drugs from international markets in violation of Food and Drug Administration regulations.
A U.S. Court of Appeals on Thursday upheld a preliminary injunction in the case filed by Gilead against several AFPs and related businesses. Patient advocacy groups say the decision could force AFPs to shrink dramatically or even go out of business.
AFPs have defended their practices as both legal and safe and say their businesses are an antidote to high prescription drug prices.