Drugmakers Fined in the U.S. for Failing to Comply with Drug Pricing Law

| By | Drug Prices, US pharma
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The Nevada Department of Health and Human Services this week sent letters to 21 diabetes drug manufacturers seeking $17.4 million in penalties for non-compliance with a new price transparency law.

“This legislation requires the Department to compile a report of information related to prescription drugs used to treat diabetes. As part of the legislation, the Department of Health and Human Services (DHHS) can impose a penalty for companies who fail to provide the required information by deadlines established in law,”

Shannon Litz, the public information officer at the department, told Focus.

The required report must contain various information on production costs, marketing and advertising costs, patient assistance programs and the wholesale acquisition cost and historical increases, among other information.

The most that any company was assessed was $910,000, which was charged to 13 companies including Apotex, Macleods Pharmaceuticals, Granules India, Alkem Laboratories and Strides Pharmaceuticals. Daiichi Sankyo was assessed a penalty of $735,000, which was the smallest penalty.

“The letters include notification of the penalty and the process for an informal dispute resolution meeting where they can provide additional information,”

Litz said.

While noting that diabetes-related medical expenses total $2.4 billion per year, the department also said the law will allow the department to provide transparency for consumers on price increases.

SOURCE: raps.org
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