D.C. Price Control Law Found to Be Unconstitutional
WASHINGTON, D.C. (August 2, 2007) -- The Biotechnology Industry Organization (BIO) today commended the United States Court of Appeals for the Federal Circuit for yesterday’s action upholding a lower court’s ruling that the District of Columbia law seeking to control the price of pharmaceutical products was unconstitutional.
The U.S. District Court for the District of Columbia ruled in December 2005 that the “Prescription Drug Excessive Pricing Act of 2005” was preempted by federal patent laws and therefore unconstitutional. The presiding judge, Richard Leon, stated in his ruling that Congress sought to “encourage and reward the innovation, research, and development of new drugs” and that the Act did not “square with the congressional purpose and objectives” of our nation’s patent laws. The District of Columbia appealed, and the Court of Appeals agreed to review the case.
The Court of Appeals unanimously affirmed the District Court’s ruling yesterday, finding that the District of Columbia law is “contrary to the goals established by Congress in the patent laws.”
“I am pleased that the Court of Appeals unanimously affirmed the lower court’s ruling based on the fundamental constitutional flaws of the District of Columbia law,” said Jim Greenwood, president and CEO of BIO. “BIO continues to support providing greater access to innovative therapies. However, this law, like other price control measures, would not have had the intended effect of increasing patient access to drugs. Instead, it would have discouraged the development of new therapies for the diseases which plague us and our loved ones.”
BIO represents more than 1,100 biotechnology companies, academic institutions, state biotechnology centers and related organizations across the United States and 31 other nations. BIO members are involved in the research and development of healthcare, agricultural, industrial and environmental biotechnology products. BIO also produces the annual BIO International Convention, the global event for biotechnology. www.bio.org
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October 9-11, 2007
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