US drug industry mouthpiece the Pharmaceutical Research and Manufacturers of America is suing the state government of Washington DC over its legislation aimed at reducing prescription drug prices.
PhRMA alleges that the legislation - which would make it illegal for drug companies to charge excessive prices for drugs - will cripple hold back the development of new drugs, create shortages and leave the sector open to "a limitless parade of lawsuits" according to a report in the Washington Post.
Washington's new regulations, signed into law on October 4, suggest that an excessive price for a drug would be one 30% or more above the level charged in Germany, Canada, Australia or the UK. Those companies found guilty of over-pricing will be exposed to civil penalties, unless they can justify the pricing strategy in court.
The architect of the new legislation, District Council Member David Catana, claims that people in Washington DC pay on average 68% more than their counterparts overseas for new prescription drugs.
(see; http://pharmagossip.blogspot.com/2005/10/myth-or-reality.html )
A US District Court judge rejected a PhRMA request last week for a temporary restraining order to block publication of the law. A hearing in the case is scheduled for November 18.
Insiders view: PhRMA have recently shown their "true colors" with the "Pill Fiction" scandal.
http://pharmagossip.blogspot.com/2005/10/pill-fiction.html
Their case will make interesting reading. Almost as interesting as, say, a scary work of fiction!
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