Monday, October 9, California Governor Jerry brown signed legislation that requires pharmaceutical companies to inform about the price increases on prescription medicines, writes Reuters.
The main goal of the new law is to achieve greater transparency in the pricing policy in the pharmaceutical field. Now, if the company is going in the next two years to raise drug prices by more than 16%, it has 60 days to notify the authorities of the state. In addition, the law requires that health insurance was reported as the price increases affecting health insurance premiums in California.
«Californians have a right to know why their drug costs out of control, especially as the revenues of pharmaceutical firms are growing,» said Governor brown.
Biotechnology Innovation Organization (BIO), the leading trade organization in the field of biotechnological production, issued a statement in which it criticized the bill. According to its representatives, the new rules will not serve the intended purpose.
«This law will not provide useful information to patients and will help reduce the cost of prescription drugs,» reads the statement. In addition, the law «poses a serious threat to California’s leadership position in this innovative industry.»
Currently in California there are hundreds of biotechnology companies that are engaged in manufacturing and drug development.
