Maryland asks Supreme Court to uphold law against generic drug price-gouging

Maryland Attorney General Brian Frosh is asking the U.S. Supreme Court to uphold a state law designed to combat price-gouging of generic drugs.

He specifically seeks to reverse the 4th U.S. Circuit Court of Appeals' April decision that the law violated the U.S. Constitution by attempting to regulate trade outside of Maryland, The Baltimore Sun reported.

Mr. Frosh said the generic drug prices have "skyrocketed."

"We are fighting to ensure Marylanders continue to have access to the essential generic medicines they need," he said.

The law, which, according to Reuters, allows the state to sue generic drugmakers who implement sharp price hikes on medications, passed in 2017. The pharmaceutical industry challenged the law, but it still took effect for a short time after a federal judge declined to block it. The law was put on hold after the appellate court decision.

A spokesperson for the Association for Accessible Medicines, which challenged the law, told The Baltimore Sun it continues to support the appellate court decision.

"We believe the 4th Circuit Court of Appeals correctly determined that the state of Maryland lacks authority under the commerce clause of the Constitution to regulate transactions that occur outside of its borders," said Jeffrey Francer, the group's senior vice president and general counsel. "The Maryland law would harm patients by damaging the national market for more affordable generic medicines."

 

More articles on legal and regulatory issues:

Texas hospital co-founder admits bribing physicians as part of $200M billing scheme
Kentucky hospital's ex-chief of staff fails to halt $361M sale to Baptist Health
Hospital management company CEO wants money, property released amid investigation

© Copyright ASC COMMUNICATIONS 2020. Interested in LINKING to or REPRINTING this content? View our policies by clicking here.

 
 

Featured Webinars

Featured Whitepapers