New legislation would force companies to justify price hikes

Sens. Tammy Baldwin (D-Wis.) and John McCain (R-Ariz.) and Rep. Jan Schakowsky (D-Ill.) introduced the Fair Accountability and Innovative Research (FAIR) Drug Pricing Act in the U.S. House and Senate.

The bills would require drug companies to notify HHS and submit a report justifying any drug price increase of at least 10% over a 12-month period. The report, due 30 days before the price hike, would require the companies to provide information on manufacturing, R&D and IP and licensing costs; total revenue and net profits; and marketing and advertising spending. ...