In a widely anticipated move, a pharmaceutical industry trade group has filed a lawsuit seeking to stifle a new California law that requires drug makers to explain and justify price hikes.
The law has been hailed by supporters as a key attempt to provide transparency into opaque pricing practices amid growing public outrage over the cost of medicines. Not only is the law one of the more comprehensive efforts to address the issue, but California is seen as a bellwether for the rest of the nation and drug makers fear other states will attempt to adopt similar measures.
The pharmaceutical industry, however, argued in its lawsuit filed on Friday that the law is unconstitutional by violating interstate commerce and free speech principles. And the trade group maintained the law unfairly holds drug makers largely accountable for prices, instead of pharmacy benefit managers that negotiate undisclosed rebates and discounts for insurers, a favorite complaint of pharma executives.