A new California law requiring pharmaceutical companies to provide advanced notice of price increases and justify them is unconstitutional, drugmakers said in a lawsuit filed Dec. 8.
California Senate Bill 17, which Gov. Jerry Brown (D) signed Oct. 9, requires pharmaceutical companies to notify insurers and government health plans 60 days in advance of a price increase above a certain threshold and provide a rationale for it. Both those requirements are unconstitutional, and the law should not be allowed to take effect, the Pharmaceutical Research and Manufacturers of America (PhRMA) argued in its filing.
The case is one in a ...
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