
The pharmaceutical industry is fighting back against a Maine law that would require the industry to bargain with the state over pricing. The Washington-based Pharmaceutical Research and Manufacturers of America has filed a challenge in the U.S. District Court for the District of Maine, claiming Maine's "Act to Establish Fairer Pricing for Prescription Drugs" is unconstitutional. The law, which was signed by Governor Angus King in May of 2000 and took effect the following August, allows the state to collectively negotiate rebates on drugs from pharmaceutical companies, which would then be sold at lower costs through participating pharmacies. The law also authorizes government price controls if state officials are not satisfied with the price decreases by July 2003.
