PhRMA is challenging Oregon’s drug price transparency laws HB 4005, 2018 (Disclosure Law) and HB 2658, 2019 (Advance Notification Law) alleging that the laws are unconstitutional because they violate the Commerce Clause, First Amendment, the Takings Clause, and trade secret protections.

The Disclosure Law, which went into effect at the beginning of 2019, required drug makers to notify the state and provide detailed information when list prices rise by at least 10% or a new medicine is introduced that costs more than $670 for a month’s supply. The Advance Notification Law, which had not gone into effect at the time of the complaint filing, would require drug makers to provide the government with any plans to hike list prices for any medicine where an increase will be at least 10% or $10,000 over the preceding year and then wait 60 days before implementing any increases.

The parties agreed to have the portion of the case focused on the Advance Notification Law stayed pending the resolution of PhRMA v. David. Upon the resolution of that case, the proceedings resumed and both parties have moved for partial summary judgment.

On Feb. 16, 2024, the U.S. District Court for Oregon issued a declaratory judgment that section 2(3) of the Prescription Drug Price Transparency Act violates the First Amendment to the U.S. Constitution and is, therefore, unenforceable, awarding the Plaintiff with an enforceable declaratory judgment.

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