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PhRMA Sues California for Price Transparency Law – Again

October 12, 2018

PhRMA filed an updated version of its lawsuit against California’s drug pricing transparency law, providing specifics the court said its initial complaint lacked.

PhRMA initially filed a complaint in December 2017 in the Eastern District of California, claiming a section of the state law that requires drugmakers to justify certain prescription drug price increases was unconstitutional because it could penalize drugmakers for conduct occurring outside of the state. The court dismissed the complaint, ruling that PhRMA’s arguments were overly speculative since they failed to specify planned price increases that would trigger the law.  It gave PhRMA 30 days to file an amended complaint.

In the revised challenge, PhRMA dropped Gov. Jerry Brown as a defendant and added more information designed to show how the law would directly harm PhRMA members. The updated lawsuit provided a specific, anonymized example of an advance notice one member company had to file due to the law, which PhRMA described as a violation of that company’s constitutional rights. The amended complaint further claims some members have increased prices during the statutory two-year look-back period, and the state has not clarified whether the law is retroactive.

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