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Judge Dismisses PhRMA’s Dispute Against California Drug Pricing Law

October 5, 2018

A federal judge in the US. District Court for the Eastern District of California threw out PhRMA’s case contesting state drug pricing legislation, but left the door open for an amended filing.

The trade group filed the lawsuit in December 2017, two months after California Senate Bill 17 was signed into law, claiming that one section of the measure is unconstitutional. The section mandates notice, reporting and justification requirements for manufacturers of prescription drugs sold to certain purchasers.

“The new law imposes nationwide restrictions on the list price of pharmaceutical manufacturers’ products,” PhRMA said in its complaint. “It penalizes manufacturers for conduct that occurs exclusively outside California, and it intentionally exports California’s policy choices regarding prescription drug pricing on the entire nation.”

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