Judge tosses lawsuit against California drug price law
SACRAMENTO, Calif. (AP) — A federal judge has dismissed a lawsuit seeking to block a California law requiring pharmaceutical companies to give advance notice before big price increases.
U.S. District Judge Morrison England Jr., ruled Thursday in Sacramento that the Pharmaceutical Research and Manufacturers of America failed to show that the court has jurisdiction to hear the case. He gave PhRMA 30 days to refile.
The law requires 60 days’ notice to raise national wholesale prices above a certain threshold.
PhRMA says California’s law illegally tries to dictate national health policy. The group also says the bill is unconstitutionally vague and violates the First Amendment by forcing drug companies to justify price increases.
A PhRMA spokeswoman said Thursday the organization still has concerns about the law’s constitutionality.