The Pharmaceutical Research and Manufacturers of America, the drug industry's top lobbying group, filed a lawsuit this week against the state of Oregon, claiming two laws it passed requiring greater transparency of drug prices are unconstitutional, according to STAT.
One law, called the Disclosure Law, went into effect in the state earlier this year and requires drugmakers to tell the state when its list prices rise by at least 10 percent or a new drug is introduced that costs more than $670 per month. Drugmakers also must explain why their prices rose and provide detailed information about the manufacturing, marketing and distribution costs for that drug.
The other law is set to go into effect Jan. 1 and requires drugmakers to provide notice of any plans to hike list prices for a drug if the increase will be at least 10 percent or $10,000 more than the preceding year. The drugmaker must also give state officials that information and wait 60 days before implementing any price increases.
PhRMA argues these laws illegally require drugmakers to disclose trade secrets, impinge on commercial free speech rights and violate the commerce clause of the Constitution, according to STAT. The laws take intellectual property without compensation, the lobbying group claims.
The lawsuit filed by PhRMA asks the state to void both laws.
Other states have passed similar laws, citing frustration with Washington over failing to address rising drug costs, according to STAT.
Read the full article here.
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