A state law aimed at preventing huge price hikes for medications is under legal attack by the Pharmaceutical Research and Manufacturers of America. The trade group filed a lawsuit Friday challenging California Senate Bill 17, which was signed by Gov. Jerry Brown in October. Some provisions in the bill are set to take effect Jan. 1.

SB 17 requires manufacturers to give a 60-day notice before raising the "wholesale acquisition cost" of many drugs by more than 16 percent over two years. The notice must include a statement of whether a change or improvement in the drug requires the price increase. The law had wide bipartisan support from state legislators.

PhRMA contends the law is an attempt to dictate national health policy and could lead to drug stockpiling. It also ignores the role of other parties in setting the prices that consumers ultimately pay, PhRMA contends.

"In addition to this interference with interstate commerce, the Act imposes improper—and unconstitutional—burdens on pharmaceutical manufacturers," the lawsuit states. "It requires them to publicly convey and implicitly endorse the State's position that the manufacturers are to blame for the allegedly inflated prices of prescription drugs."

The lawsuit names Gov. Brown and Robert David, director of the California Office of Statewide Health Planning and Development, as plaintiffs. The complaint was filed in the U.S. District Court for the Eastern District of California.

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