MICHIGAN HOUSE VOTES TO ALLOW RESIDENTS TO SUE DRUG COMPANIES

The Michigan House of Representatives voted to repeal a state law that prevents residents from suing drug companies -- the only law of its kind in the country.

The legislation would reverse a 1996 law that bars Michigan residents from suing drug companies for damages caused by side effects of FDA-approved prescription drugs. The legislation, backed mainly by Democrats, passed Feb. 22 by a vote of 70-39 and now heads to the Republican-led state Senate.

Michigan Republicans have generally opposed the bill, saying it will raise prescription drug prices and harm the state's efforts to recruit life sciences jobs. Supporters of the legislation say the current law fails to hold drugmakers accountable for their products. The Michigan Trial Lawyers Association called the state's law the most restrictive in the country.

Included is a proposal that would allow residents to file retroactive lawsuits. That bill could affect companies such as Merck, which faces approximately 27,400 cases over Vioxx.

Democrats rejected Republican amendments to the bill that would exempt Michigan-based companies from lawsuits and limit the amount of money personal injury lawyers could earn on cases.

Opponents said the only people who will benefit from the proposed legislation are lawyers, while consumers will suffer from increased prices and limited medication choices. Lisa Rickard, president of the U.S. Chamber Institute for Legal Reform, called the vote a "giant step backwards" in keeping Michigan's legal climate business-friendly. The vote is just the first move by lawyers in "an orchestrated attack" on Michigan's reform system, Rickard added.

( http://www.fdanews.com/did/6_40/ )