A Minnesota district court judge on Monday halted a state law designed to prevent major drug price increases after the generic drug industry group known as the Association for Accessible Medicines ultimately prevailed in the case on constitutional grounds.
The court said that the law, which took effect in July, unlawfully regulates transactions outside of the state, which violates what’s known as the Dormant Commerce Clause, which prohibits state legislation from discriminating against or unduly burdening interstate commerce.
For instance, Monday’s order says, generic drug manufacturers may face $500,000 penalties under the law, even if they choose not to engage in commerce in Minnesota.
“The Court cannot find any support for the notion that the dormant Commerce Clause permits Minnesota to directly regulate a sale that occurs in another state simply because the product eventually makes its way into Minnesota,” chief judge Patrick Schiltz wrote.
He notes that the steep…
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