Court Dismisses PhRMA Drug Price Suit

Share

A California federal court has dismissed on procedural grounds a suit brought by Pharmaceutical Research and Manufacturers of America (PhRMA) seeking to block enforcement of California Senate Bill 17 that imposed notification and reporting requirements on drug manufacturers for certain price increases on their products sold to state purchasers, insurers, and pharmacy benefit managers in the state. Attorneys David Gibbons and Alan Kirschenbaum (Hyman, Phelps & McNamara) write in their firm’s FDA Law Blog that PhRMA challenged the law on three distinct constitutional grounds. The association says the law violates the Commerce Clause by regulating interstate commerce, violates the First Amendment by compelling manufacturers to speak and in a manner that expresses viewpoints that are not speaker- or content-neutral, and that the law is unconstitutionally vague.

The state argued that the court lacked subject matter jurisdiction under the Federal Rules of Civil Procedure and also said that PhRMA lacked standing to bring the suit and thus failed to state a claim upon which relief could be granted. The court agreed with California on both positions and thus dismissed the suit without ever reaching the constitutional questions PhRMA raised.

The suit was dismissed without prejudice and PhRMA was given 30 days to amend its complaint and include additional facts to address the procedural defects.

Read more