U.S. appeals court strikes down Maryland drug price-gouging law

Source: Reuters

(Reuters) - A federal appeals court on Friday declared unconstitutional a Maryland law enacted last year that lets the state attorney general sue generic drugmakers who sharply raise prices on medications.

The 4th U.S. Circuit Court of Appeals sided with the main trade group for generic pharmaceutical companies in holding that the state law violated the U.S. Constitution by regulating the price of transactions that occur outside of Maryland.

“To be clear, we in no way mean to suggest that Maryland and other states cannot enact legislation meant to secure lower prescription drug prices for their citizens,” U.S. Circuit Judge Stephanie Thacker wrote for the 2-1 majority.

But Thacker wrote that while drug manufacturers are by no means entitled to engage in abusive pricing practices, the law violated had the so-called dormant commerce clause of the Constitution by regulating prices charged for medications outside the state.

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HEALTH NEWS APRIL 13, 2018 / 12:38 PM / UPDATED 33 MINUTES AGO
Nate Raymond
2 MIN READ


Read more: https://www.reuters.com/article/us-drugs-pricing-maryland/u-s-appeals-court-strikes-down-maryland-drug-price-gouging-law-idUSKBN1HK2FS