Two pharmaceutical industry organizations dropped a lawsuit against the state of Nevada for a drug-transparency law they argued violated trade-secret protections.

A U.S. District Court for the District of Nevada judge dismissed the case June 28 without prejudice after the Pharmaceutical Research and Manufacturers of America, or PhRMA, and the Biotechnology Innovation Organization, or BIO, said the state quelled their concerns over protecting trade secrets. Both groups represent biopharma research and development organizations.

Their lawsuit centered on a diabetes drug-transparency law signed by Gov. Brian Sandoval (R) last year to require manufacturers to report certain information about...