Novartis bitch slapped
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Novartis bitch slapped
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Once again Novartis is on the WRONG SIDE OF THE LAW
High Court Won't Block Puerto Rico's Control Of Drug Prices
Law360, New York (October 07, 2013, 7:08 PM ET) -- The U.S. Supreme Court on Monday declined to consider a Novartis Pharmaceuticals Corp. petition objecting to Puerto Rico's regulation of drug prices charged to wholesalers, leaving intact a lower court's finding that the oversight doesn't usurp Congress' power over interstate commerce.
As is customary, the high court offered no explanation for refusing to review the case, which centered on the so-called dormant Commerce Clause, an implied ban on regulation of interstate trade by states or territories that derives from the explicit power over such activity that the U.S. Constitution grants to Congress.
According to Novartis' petition, a Puerto Rico appeals court last year found that the island's Department of Consumer Affairs, known as DACO, can control the Swiss drugmaker's prices because the company markets and promotes its products in the territory, even though they are not physically sold there.
As a result, the court found that there is no intrusion on cross-border commerce, even if the title to the drug products changes hands in other states, specifically New Jersey and Pennsylvania, according to the petition.
Novartis blasted that conclusion, asserting in its petition that "there is no question that the actions intended to be regulated occur outside of Puerto Rico's boundaries."
It is not clear from the petition whether price controls are currently in place or which other drugmakers are affected. Novartis, which has been selling in Puerto Rico for decades, says DACO launched its effort to curb drug costs in 2001 and later demanded a 2 percent discount for island wholesalers.
Counsel for Novartis did not immediately respond to a request for comment, and DACO could not be reached for comment.
In addition to constitutional questions, the matter represents the latest chapter in an ongoing debate over whether government officials should more aggressively try to contain the cost of brand-name drugs whose manufacturers doled out tens of billions of dollars to dissuade Congress from allowing Medicare to negotiate prices when it passed the Affordable Care Act.
Last month, for example, an inspector general's report said Medicare could save more than $3 billion annually under a limited expansion of drug rebates that currently apply only to Medicaid, although federal regulators said they had no intention of pursuing the idea, citing various technical challenges.
Many other countries restrict drug prices far more than the U.S., but there has been resistance to a stronger approach among American lawmakers, especially Republicans, with some observers concerned it could sap money for research and development.
Novartis is represented by Herman G. Colberg and Jorge I. Peirats of Pietrantoni Mendez & Alvarez LLC.
The case is Novartis Pharmaceuticals Corp. v. Department of Consumer Affairs, case number 13-77, in the Supreme Court of the United States.
--Editing by Katherine Rautenberg.
High Court Won't Block Puerto Rico's Control Of Drug Prices
Law360, New York (October 07, 2013, 7:08 PM ET) -- The U.S. Supreme Court on Monday declined to consider a Novartis Pharmaceuticals Corp. petition objecting to Puerto Rico's regulation of drug prices charged to wholesalers, leaving intact a lower court's finding that the oversight doesn't usurp Congress' power over interstate commerce.
As is customary, the high court offered no explanation for refusing to review the case, which centered on the so-called dormant Commerce Clause, an implied ban on regulation of interstate trade by states or territories that derives from the explicit power over such activity that the U.S. Constitution grants to Congress.
According to Novartis' petition, a Puerto Rico appeals court last year found that the island's Department of Consumer Affairs, known as DACO, can control the Swiss drugmaker's prices because the company markets and promotes its products in the territory, even though they are not physically sold there.
As a result, the court found that there is no intrusion on cross-border commerce, even if the title to the drug products changes hands in other states, specifically New Jersey and Pennsylvania, according to the petition.
Novartis blasted that conclusion, asserting in its petition that "there is no question that the actions intended to be regulated occur outside of Puerto Rico's boundaries."
It is not clear from the petition whether price controls are currently in place or which other drugmakers are affected. Novartis, which has been selling in Puerto Rico for decades, says DACO launched its effort to curb drug costs in 2001 and later demanded a 2 percent discount for island wholesalers.
Counsel for Novartis did not immediately respond to a request for comment, and DACO could not be reached for comment.
In addition to constitutional questions, the matter represents the latest chapter in an ongoing debate over whether government officials should more aggressively try to contain the cost of brand-name drugs whose manufacturers doled out tens of billions of dollars to dissuade Congress from allowing Medicare to negotiate prices when it passed the Affordable Care Act.
Last month, for example, an inspector general's report said Medicare could save more than $3 billion annually under a limited expansion of drug rebates that currently apply only to Medicaid, although federal regulators said they had no intention of pursuing the idea, citing various technical challenges.
Many other countries restrict drug prices far more than the U.S., but there has been resistance to a stronger approach among American lawmakers, especially Republicans, with some observers concerned it could sap money for research and development.
Novartis is represented by Herman G. Colberg and Jorge I. Peirats of Pietrantoni Mendez & Alvarez LLC.
The case is Novartis Pharmaceuticals Corp. v. Department of Consumer Affairs, case number 13-77, in the Supreme Court of the United States.
--Editing by Katherine Rautenberg.