In a victory for the pharmaceutical industry, a U.S. appeals court upheld a lower court decision to halt a controversial Minnesota law that is designed to provide transparency into prescription drug pricing.
The decision was issued as the result of a lawsuit filed three years ago by the Association for Accessible Medicines, which argued the law gives Minnesota the power to regulate interstate commerce and apply the law to prices charged in other states. The trade group also contended the law violates the constitutional right to due process because the state can file lawsuits over out-of-state transactions.
The Minnesota law, which was enacted in 2020, resembles other so-called transparency laws that were pursued in some other states over the past decade. The law seeks to identify the factors driving prescription drug costs higher and correlate these to certain expenses, revenue, and profits reported by pharmaceutical manufacturers.
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