12:20 PM
Mar 13, 2018
 |  BC Extra  |  Politics & Policy

Oregon governor signs price transparency bill

Editor's Note: This article was updated on Mar 13, 2018 at 4:12 PM PDT

Oregon Governor Kate Brown signed into law drug price transparency bill H.B. 4005 on Tuesday.

The new law requires manufacturers to report information annually on drug prices and price increases, including factors contributing to the price hikes. Sponsors must also disclose R&D and marketing costs, revenues and profits. The law applies to drugs for which the monthly price exceeds $100 and the price increased more than 10% over the previous calendar year. Initial reports are due in July 2019.

For a new specialty drug whose price exceeds the Medicare Part D threshold, a manufacturer must describe the methodology used to establish its price, as well as R&D and acquisition costs, marketing information and an estimate of the number of patients who will receive the drug. Those reporting requirements go into effect in March 2019.

BIO President and CEO Jim Greenwood and Oregon Bioscience Association Executive Director Denise McCarty issued statements suggesting the law's effects could be misleading.

Greenwood commented that it "doesn't shine any light on insurers or other middlemen who ultimately determine" the cost to the consumer. He added the law would "have a chilling effect" on industry innovation.

According to McCarty, the law will not affect drug prices or "provide meaningful information" to consumers.

The bill passed Oregon's Senate earlier this month and its House of Representatives in late February (see BioCentury Extra, March 1 & March 5).

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