California Joins States Looking to Rein In Drug Price Hikes

California Gov. Jerry Brown (D) signed price transparency measures into law that require drugmakers to notify purchasers ahead of large increases and to justify those increases to the state.

The signing adds California to the growing list of states taking steps to address rising drug prices.

Starting Jan. 1, 2019, the law requires manufacturers to disclose sales, marketing and development costs, as well as patent information and other financial factors related to price increases on a quarterly basis.