Generic drug group sues to block Maryland price-gouging law - (Business Insider via NewsPoints Desk)

  • The Association for Accessible Medicines has filed a lawsuit in US federal court in a bid to block a recently adopted Maryland law that allows the state attorney general sue generic drugmakers that sharply increase prices, as reported in Business Insider.

  • "If this new law goes into effect, it will harm patients and our communities by reducing choice and limiting access to essential medicines that people need," warned Chip Davis, the group's chief executive.

  • Specifically, the legislation allows Maryland's state authority on Medicaid to notify the attorney general's office when it sees patients being charged an "unconscionable increase" for essential generic drugs.

  • The attorney general could then seek an explanation from the manufacturer and sue to protect consumers, with a fine of as much as $10 000 for each violation, while a judge could order the company to reverse its price increase.

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