Supreme Court rejects Maryland appeal to revive drug price-gouging law News
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Supreme Court rejects Maryland appeal to revive drug price-gouging law

The US Supreme Court on Tuesday declined to hear Maryland’s bid to revive a 2017 law aimed at reining in prescription drug costs.

The law, aimed specifically at the practice of price gouging by pharmaceutical companies, was enacted after several high-profile price increases. In particular, Turing Pharmaceuticals in 2015 increased the price of its anti-parasitic drug Daraprim from $13.50 to $750 per pill. The law prohibited “unconscionable” price increases for generic drugs sold in the state and drugs no longer covered by patent.

The law was struck down in 2018 by the US Court of Appeals for the Fourth Circuit, which ruled that the state had violated the Constitution’s ban on state-level interference in interstate commerce. The law was said to create an undue burden on out-of-state competitors by regulating the price charged by manufacturers and wholesalers, rather than the price at which the drug is ultimately sold to consumers.

In its petition, Maryland stated that the price hikes at issue have created significant financial stress for families. The increases have been particularly steep for critical drugs which are sold by a small number of companies. Maryland appealed the appeals court’s decision to the US Supreme Court, which denied the appeal without comment.