Maryland Sued Over New Pharmaceutical Price Gouging Law - WBOC-TV 16, Delmarvas News Leader, FOX 21 -

Maryland Sued Over New Pharmaceutical Price Gouging Law

Posted: Jul 07, 2017 2:26 PM Updated:
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GREENBELT, Md. (AP/WBOC)- A group representing manufacturers of generic prescription drugs has filed a lawsuit against Maryland over the state's new law intended to stop pharmaceutical price gauging.

The Association for Accessible Medicines filed the lawsuit Thursday in federal court in Maryland. The group calls the law an "unconstitutional overreach" and says it will create instability in the market for generic drugs and provide an incentive for decreased generic drug competition. 

“Rather than allow the vibrant competition in the generic drug marketplace to continue working for patients, Maryland would become the first state to reject generic competition in favor of more government regulation – of generic drugs, the only segment of health care costs that is actually declining.” said AAM CEO Chip Davis in a statement. “If this new law goes into effect, it will harm patients and our communities by reducing choice and limiting access to essential medicines that people need.”

Lawmakers passed the law earlier this year. It empowers the state's attorney general to take action to stop pharmaceutical price gouging. Manufacturers could face a fine of up to $10,000 per violation. The law is set to take effect in October.

Maryland Attorney General Brian Frosh, who championed the measure, has said the law will give the state a "necessary tool to combat unjustified and extreme prices."

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