For the first time since requiring drug makers to report pricing data about their diabetes medicines, Nevada officials plan to impose fines totaling more than $17 million on 21 companies for failing to supply information required by a controversial state law.
Earlier this week, the state Department of Health and Human Services wrote each of the drug makers that they face hundreds of thousands of dollars in penalties for not submitting required information, while several others will be fined for failing to meet a deadline. Each drug maker is entitled to an informal dispute resolution before the cases are referred to the state attorney general.
The fines, which were first reported by The Nevada Independent, are being pursued as more states grapple with rising drug costs and consider so-called transparency laws. By doing so, states hope to force drug makers to explain recent price hikes and provide more detailed information about costs associated with developing medicines, which the pharmaceutical industry has used to justify pricing.