2023-07-07 11:30:25 ET
The Association for Accessible Medicines, which has some of the world's largest generic drug manufacturers as members, is suing the Minnesota Attorney General over a new price control law.
The suit, filed in federal court in the state, aims to block the price-control provisions of Senate File 2744, which takes effect in July.
The trade group argues that the legislation doesn't apply to brand-name drugs, but generic drugs only.
"If the legislation were to be enforced, it would most likely lead to fewer generic alternatives and less competition, which would harm and not help Minnesota patients," the association said in a press release. "That is because it prohibits generic drug manufacturers from changing their prices by more than a set amount even if the cost of producing the drug increases."
The group also argues that given supply-chain issues and drug manufacturing shortages, manufacturers would have to absorb the additional costs and sell generics at a loss, which "will drive generics out of the market, benefiting no one — except potentially brand-name pharmaceutical companies."
Members of AAM include Teva Pharmaceutical ( AAM ), the Sandoz division of Novartis ( NYSE: NVS ), Amphastar Pharmaceuticals ( NASDAQ: AMPH ), and Amneal Pharmaceuticals ( NYSE: AMRX ).
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Generic drugs lobby sues Minnesota over price control law