PhRMA Suit on California Pricing Law Can Proceed: Court

An amended complaint by Pharmaceutical Research and Manufacturers of America (PhRMA) against a California drug pricing disclosure law has been given more stable footing after a federal court allowed the lawsuit to move forward. The controversial California law (see earlier story) requires pharmaceutical manufacturers to provide advance notice when raising product pricing and the reason for such hikes.

 

PhrMA had argued that the law is unconstitutional due to its various notice, reporting, and justification obligations for prescription drug manufacturers. The state asked for it to be dismissed because it lacked standing and failed to state a claim.

 

In a 7/30 abbreviated ruling, the Eastern California District Court denied the state’s motion to dismiss, allowing PhRMA’s lawsuit to proceed.

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