BIO Lawsuit Challenges Washington, D.C., Price Control Law
The Biotechnology Industry Organization on Thursday filed a lawsuit against the Washington, D.C., government in U.S. District Court alleging that a new law regulating the prices of prescription drugs will "import a system of price controls" that will limit drug research and development, the Washington Times reports (McElhatton, Washington Times, 10/31).
D.C. Council member David Catania, sponsor of the legislation, said the law allows residents "affected by excessive prices" to file suit against a drug company if the wholesale price of a patented drug is 30% higher than the drug's price in Canada, Germany, Australia or the United Kingdom. Mayor Anthony Williams signed the measure into law on Oct. 3 after the council approved it in September (California Healthline, 10/21).
The Pharmaceutical Research and Manufacturers of America filed a similar lawsuit last month.
In its lawsuit, BIO maintains that the law will result in reduced drug research across the nation. "This is not the balance that Congress established, and this is not the D.C. Council's decision to make," the lawsuit states.
Catania said the law is a "consumer-protection system" that will lower the cost of medicines for patients and allow "consumers to challenge these exorbitant prices" (Washington Times, 10/31).