PhRMA and BIO v. SandovalDate Filed: September 1, 2017
District Court: District of Nevada – 2:17-cv-2315
Nature of Suit: Pharma Legislation Challenge
Defendant Type: State
Plaintiff Type: Private
Court Document: http://phrma-docs.phrma.org/files/dmfile/complaint-civil-case-cover-sheet.pdf
In September 2017, just three months after Nevada passed its insulin transparency law (SB 539) in June 2017 to increase transparency over the price of diabetes drugs, two drug lobbying groups, the Pharmaceutical Research and Manufacturers of America (PhRMA) and the Biotechnology Innovation Organization (BIO), filed a lawsuit asking the U.S. District Court to declare that federal law preempts several provisions of the transparency law. SB 359 requires drug manufacturers to report a range of pricing information for a list of essential diabetes drugs compiled by the state, including pricing history and costs, price hikes above inflation, and rebates paid to pharmacy benefit managers (PBMs). Plaintiffs sued the state claiming the law is unconstitutional and deprives drug makers of their right to protect trade secrets under the Fifth Amendment. The case was voluntarily dismissed after Nevada’s Department of Health and Human Services adopted a trade secret option that would allow pharmaceutical companies to keep certain drug pricing data confidential when they begin complying with the new transparency law, provided they explain why the information shouldn’t be disclosed to the public. Documents related to the case can be found here.