Federal Court Ruling Suspends Compliance with Certain Reporting Obligations Under Oregon Drug Price Transparency Program

The Oregon Drug Price Transparency Program was created by the Oregon Prescription Drug Price Transparency Act, signed into law on March 13, 2018, and Oregon House Bill 2658, signed into law on June 20, 2019. As codified in Or. Rev. Stat. § 646A.689(3), the Program requires manufacturers to report certain information regarding annual price increases for prescription drugs.

On December 9, 2019, Pharmaceutical Research and Manufacturers of America (PhRMA) filed suit in federal court challenging both the Oregon Prescription Drug Price Transparency Act and Oregon House Bill 2658. Three months later, in March 2020, both the state and PhRMA filed motions for summary judgment.

On February 16, the district court issued a declaratory judgment ruling that section 646A.689(3) violates the First Amendment to the US Constitution and is therefore unenforceable. Following the ruling, the Oregon Department of Consumer and Business Services suspended the annual price increase reporting requirement under section 646A.689(3).

Notably, the agency stated that it intends to appeal the court ruling and will provide updated guidance as appropriate. Additionally, the court ruling does not impact other reporting requirements of the Program.

ArentFox Schiff is closely monitoring state drug price transparency reporting requirements and will continue to report on notable updates. If you are interested in more information about this topic, please contact ArentFox Schiff’s Health Care group.