Maryland Defends Price Gouging Law Against AAM Suit

The state of Maryland defended its law against generic drug price gouging in court, moving to dismiss a complaint brought by the industry’s trade group, the Association for Accessible Medicines.

Attorney General Brian Frosh told the Maryland federal district court that the law passed earlier this year applies only “when a price increase shocks the conscience,” and is not the sweeping, extra-territorial price control described by the AAM.

Passed in April, Maryland’s law gives the attorney general the power to take generic drugmakers to court for dramatic hikes in the price of essential, off-patent medications, and allows for civil penalties. The AAM hopes the court will block the law, HB 631, before it takes effect Oct. 1.