CEO DATELINE - Maryland considers allowing lawsuits against pharmaceutical ‘price gouging'
CEO DATELINE - Maryland considers allowing lawsuits against pharmaceutical ‘price gouging'
- April 18, 2017 |
- Walt Williams
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Maryland could soon become the first state to allow its attorney general to sue pharmaceutical companies for drastically increasing the price of certain medications, but an association representing generic drug manufacturers is urging Gov. Larry Hogan to veto the proposed law.
The Association for Accessible Medicines has asked Hogan to veto a bill allowing the state to bring lawsuits against pharmaceutical companies "engaging in price gouging" of essential generic drugs. The bill cleared the Democrat-controlled state legislature but Hogan, a Republican, has yet to sign it into law.
Drug prices have become a loaded political issue as a result of a series of controversies involving dramatic price spikes in life-saving medications. Last year, generic pharmaceutical manufacturer Mylan was criticized for increasing the price of its popular EpiPens from $100 per pack to more than $600 in a 10-year period. (Mylan CEO Heather Bresch was chair of AAM's board of directors in 2016.)
AAM CEO Chip Davis issued a statement saying the proposed law could have the opposite effect by forcing generic drug manufacturers to pull their products from the state, thereby depriving residents of access to vital medicines.
"(I)f the new level of risk presented by the legislation compels several manufacturers, all competing in the same therapeutic market, each on its own, to decide that the risk is too high, they will look to stop manufacturing or marketing certain medicines," Davis said. "If that happens, it will mean less competition, not more, and that will translate into fewer options and ultimately higher health care costs, none of which is a good for Maryland patients and taxpayers." http://bit.ly/2oJykl3
Despite AAM's protests, a veto may not matter. Many Republican lawmakers joined their Democratic colleagues in passing the bill, which currently has enough votes to override a governor's veto, the Associated Press reported. http://bit.ly/2okv3r8
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