Pharmaceutical industry mounts federal court challenge to California drug price transparency law

The pharmaceutical industry is suing California over its new drug price transparency law. It claims the law is unconstitutional and holds the industry solely responsible for escalating drug prices when many others play a significant role in the pricing. (San Jose Mercury News, December 8, 2017, by Tracy Seipel)

The drug industry argues in their lawsuit that in requiring drug manufacturers to justify price rises, the law compels speech in violation of the First Amendment. (PhRMA, December 8, 2017, press release)

The law requires a 60-day notice to the public of intent to raise prices beyond a certain threshold plus an annual report to the state about which drugs are most expensive, most frequently prescribed and which have the largest price increase from year-to-year. (Los Angeles Times, December 8, 2017, by John Myers)

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