General Assembly Passes Generic Drug Price Gouging Bill

HB 631 authorizes the Maryland Attorney General’s Office to take legal action to stop price gouging by corporations selling off-patent or generic drugs.  The new law provides a tool to combat unjustified and extreme price increases for medicines that have long been on the market and that are essential to health.  Currently, the generic pharmaceutical industry accounts for approximately 88 percent of all U.S. prescriptions.


Late last year, Attorney General Frosh joined 19 other state attorneys general in a federal lawsuit against generic drug-maker Heritage Pharmaceuticals, Inc., Auribindo Pharma USA, Inc., Citron Pharma, LLC, Mayne Pharma (USA), Inc., Mylan Pharmaceuticals, Inc. and Teva Pharmaceuticals USA, Inc. alleging illegal conspiracies to unreasonably restrain trade, artificially inflate and manipulate prices and reduce competition. For more, see Attorney General Frosh’s announcement.