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Drug companies sue to block California drug price law

SACRAMENTO, Calif. (AP) - Pharmaceutical companies are suing to block a new California law that would require them to give advance notice before big price increases.

Posted: Dec 8, 2017 4:25 PM

SACRAMENTO, Calif. (AP) - Pharmaceutical companies are suing to block a new California law that would require them to give advance notice before big price increases.

The Pharmaceutical Research and Manufacturers of America file suit Friday in federal court in Sacramento.

PhRMA says California's law illegally tries to dictate national health policy. The group also says the bill is unconstitutionally vague and violates the First Amendment by forcing drug companies to justify price increases.

The law requires 60 days' notice to raise national wholesale prices above a certain threshold. Drug companies say the law doesn't account for discounts and the notice will create drug shortages.

The lawsuit names Gov. Jerry Brown and Robert David, head of the Office of Statewide Health Planning and Development. Their offices did not immediately respond to requests for comment.

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