Under the law, which went into effect Oct. 1, Maryland will investigate “unconscionable increases” in prices for older, off-patent and essential generic drugs. Any violation of the measure will cost drugmakers up to $10,000.
The Association for Accessible Medicines, the generic drug industry trade group, claimed Maryland’s law was unconstitutional since it did not define price gouging and requires intervention by an individual state over a product that is delivered across the U.S. The trade group called for a preliminary injunction to block the state law.
U.S. District Judge Marvin Garbis dismissed the association’s request for an injunction, though the lawsuit will proceed on the grounds that the law is too vague. The judge dismissed the association’s other claims.
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