Association Sues New York for Taxing Opioid Makers

Generic drugmakers are suing New York state over its law imposing surcharges on distributors and manufacturers of opioids, arguing the tax disproportionately hurts generic manufacturers.

The Opioid Stewardship Act, which took effect in July, discriminates against generic drugmakers because it levies taxes based on sales volume rather than revenue, according to the Association for Accessible Medicines, which filed the lawsuit in the Southern District of New York.

The tax puts generic drug manufacturers in the crosshairs, according to the group, because generics account for 90 percent of the volume of prescriptions dispensed but only 23 percent of spending. The financial burden would likely force them to discontinue manufacturing certain drugs and exacerbate existing pain treatment shortages, AAM says.