Challenged by generics industry, Maryland's drug pricing law found unconstitutional

With federal lawmakers dallying on drug pricing, Maryland's legislature decided to take action itself. But an appeals court struck down the state's price-gouging law, and that means legislators have to go back to the drawing board. In a 2-1 opinion, the U.S. Court of Appeals for the 4th Circuit ruled that Maryland's HB 631 is unconstitutional because it regulates transactions that occur outside of Maryland's borders. Rather than target gouging in transactions between retailers and consumers, the legislation zeroes in on manufacturer-to-wholesaler transactions—which mostly happen outside of Maryland.