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Maine Battles Manufacturers On Drug Price Controls

Wed, 08/23/2000 - 12:00am — Karen Stevenson
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The Pharmaceutical Research and Manufacturers of America (PhRMA) has sued the state of Maine, challenging the state's prescription drug-pricing law as unconstitutional and an abuse of fair trade practices. PhRMA filed the suit in US District Court in Maine seeking a preliminary injunction to prevent Maine officials from implementing the law until the court has ruled on the matter.

The Maine Rx program enables the state to extract rebates and discounts from drugmakers on behalf of residents who have no prescription drug benefits, by acting as the benefits manager, negotiating rebates and pharmacy discounts that will be used to lower drug prices.

Individual drug manufacturers are taking their own steps. SmithKline Beecham decided to "reconfigure" its relationship with drug wholesalers that service Maine drug retailers, by using wholesalers not based within the state, because the Maine prescription drug law is "vague and difficult to interpret."

The Pharmaceutical Research and Manufacturers of America (PhRMA) has sued the state of Maine, challenging the state's prescription drug-pricing law as unconstitutional and an abuse of fair trade practices. PhRMA filed the suit in US District Court in Maine seeking a preliminary injunction to prevent Maine officials from implementing the law until the court has ruled on the matter.

The Maine Rx program enables the state to extract rebates and discounts from drugmakers on behalf of residents who have no prescription drug benefits, by acting as the benefits manager, negotiating rebates and pharmacy discounts that will be used to lower drug prices.

Individual drug manufacturers are taking their own steps. SmithKline Beecham decided to "reconfigure" its relationship with drug wholesalers that service Maine drug retailers, by using wholesalers not based within the state, because the Maine prescription drug law is "vague and difficult to interpret."