US state passes law blocking generic drug price-gouging

A law that allows the US state of Maryland to challenge generic drug price gouging went into effect on 1 October, despite heavy opposition from the generic drug industry. A Judge refused the Association for Accessible Medicine’s (AAM) request for an injunction to prevent the law’s enaction.

Under the new law, the state can fine generic drugmakers if they increase the price of a prescription drug in a way that is ‘excessive and not justified’ by the cost of producing the medication or the cost of appropriately expanding access to the product. The move follows high-profile cases of off-patent or generic drug prices being raised dramatically, such as Mylan’s Epipen adrenaline injectors.