What Does Every Biopharmaceutical Executive Need To Know About California's New Drug Pricing Transparency Law, And How Likely Is This To Spread To Other States And Why?

A: IN 2017, CALIFORNIA PASSED SENATE BILL 17, which is the first to ever require what is, effectively, advance public disclosure of a manufacturer’s pricing decisions, regardless of discounts or rebates resulting from negotiation. Companies will need to assess not only the compliance aspects of this notification but also what types of justifications they want or will need to prepare and the competitive and supply chain impacts of such disclosures.

Additionally, California tends to be a bellwether on these laws, increasing the likelihood of other states passing similar, but not necessarily the same, requirements, further taxing corporate compliance departments. For instance, Oregon recently passed a similar measure (but without advance notification), and at least several other states are considering these issues this legislative session.

TOM DILENGE
Tom is president, advocacy, law & public policy division for BIO. Prior to joining BIO, Tom held senior roles at the House Homeland Security and Energy and Commerce Committees.