Generic industry group sues Minnesota, calling price caps 'unconstitutional'
Generic industry group Association for Accessible Medicines has sued Minnesota Attorney General Keith Ellison in federal court, claiming certain drug pricing provisions in a new law are unconstitutional.
The 31-page suit, filed Wednesday in federal District Court for the District of Minnesota, focuses on SF 2744, a 204-page bill signed into law in May and that went into effect on July 1.
Part of that law prohibits what it calls “excessive” price increases on “any generic or off-patent drug sold, dispensed, or delivered to any consumer in the state.” Per the bill, a price increase counts as excessive if — after adjusted for inflation — its wholesale acquisition price increases by 15% over the previous year, 40% over the past three years, or exceeds $30 for a 30-day supply.
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