Generic group sues Minnesota over a drug pricing transparency law it calls an ‘unconstitutional overreach’

The trade group for generic drug companies has filed a lawsuit alleging a Minnesota law that is designed to provide transparency into prescription drug pricing is unconstitutional, the latest effort to push back against states attempting to lower the cost of medicines.

In its lawsuit, the Association for Accessible Medicines claimed the law is an “unconstitutional overreach,” because it gives the state the power to regulate interstate commerce and apply Minnesota law to prices charged in other states. The trade group also contended the law violates the constitutional right to due process because the state has the right to file lawsuits over out-of-state transactions.

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“Under the new price-control law, AAM’s members will be exposed to massive civil penalties and other monetary liability for selling their products at prices deemed by the (law) to be unacceptable, even if charged wholly outside Minnesota,” the lawsuit alleged. The trade group argued the “draconian regulations” come at a time when the generic industry is “already undergoing severe financial strain.”

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