Oregon's Drug Pricing Transparency Law Upheld by US Appeals Court Against Constitutional Challenge

Court Ruling on Oregon Law: A U.S. appeals court upheld Oregon's House Bill 4005, which aims to increase transparency in prescription drug pricing, rejecting a challenge from the Pharmaceutical Research and Manufacturers of America (PhRMA).

Constitutional Arguments Dismissed: The court found that the law does not violate pharmaceutical companies' rights to free speech or just compensation, as the required disclosures are considered commercial speech subject to regulation.

Background of the Law: Enacted in 2018, the law mandates pharmaceutical companies to report revenues and prices for drugs costing over $100 monthly or experiencing significant price increases, with the information made publicly available.

Support from State Attorneys General: Following PhRMA's lawsuit, over 21 state attorneys general supported Oregon's appeal, arguing that the law's requirements could assist states in drafting legislation to lower drug costs.