Sign In
Free Newsletter
Drug manufacturers appeal ruling on Md. drug price-gouging law
A group of prescription drug manufacturers challenging Maryland’s price gouging law are appealing a federal judge’s ruling that allowed the law to go into effect Sunday.
The Association for Accessible Medicines, an industry group representing generic drug makers, alleged the law is vague and violates the dormant Commerce Clause. AAM announced an intention to appeal to the 4th U.S. Circuit Court of Appeals, and Tuesday filed notice along with a request the judge not allow the law to take effect while the appeal is pending.
Senior U.S. District Judge Marvin J. Garbis on Friday denied the request for an injunction and dismissed the Commerce Clause claims.
“The Association for Accessible Medicines is disappointed with the district court’s decision not to enjoin Maryland’s price gouging statute, which even the district court recognized may be unconstitutionally vague,” said Jeff Francer, senior vice president and general counsel for the association, in a statement Friday.
Under the law, Maryland’s attorney general has the power to order the drug manufacturer to submit a statement explaining the reasons behind a significant price increase as well as request a court order restraining or enjoining a violation. A violation also carries a civil penalty of up to $10,000 per violation.
The law is the first of its kind in the country and went into law without the signature of Gov. Larry Hogan, who expressed concerns that it might violate the Constitution.
The case is Association for Accessible Medicines v. Brian E. Frosh et al., 1:17-cv-01860.
Daily Record Business Reporter Tim Curtis contributed to this report.
