The U.S. Court of Appeals for the Fourth Circuit struck down Maryland’s generic drug pricing law Friday, ruling that the law is unconstitutional because it regulates trade beyond the state’s borders.

The law imposed fines on generic drugmakers for price-gouging, defined in the legislation as an excessive and unjustified increase in the drug’s price.

In its decision, the appeals court said “Maryland cannot, even in an effort to protect its consumers from skyrocketing prescription drug costs, impose its preferences in this manner.”