Louisiana Adopts Price Reporting Law
Kelley Drye Client Advisory
A new law in Louisiana requires drug manufacturers to report wholesale acquisition cost (WAC) information directly to the state. Louisiana law defines WAC as “the manufacturer’s list price for the pharmaceutical drug or biological product to wholesalers or direct purchasers in the United States for the most recent month for which the information is available, as reported in wholesale price guides or other publications of pharmaceutical drug or biological product pricing data, not including prompt pay or other discounts, rebates, or reductions in price.
Louisiana Act 220 (House Bill No. 436) requires drug manufacturers or pharmaceutical marketers who engage in “any form of prescription drug marketing” to a prescriber, or his/her staff, within the state to provide the Louisiana Board of Pharmacy with the current WAC for FDA-approved drugs. The Act defines prescription drug marketing as providing “educational” or “marketing” information regarding a prescription drug in any form, including via regular mail, email, telephone and in-person meetings. The manufacturer needs to provide the Board of Pharmacy with the WAC on a quarterly basis.
Louisiana Act 236 (Senate Bill No. 59) mandates that the Board of Pharmacy develop a website disclosing the WAC information and made available to prescribers within Louisiana. The Act further states that a pharmaceutical marketer who is engaging in prescription drug marketing within the state may inform the prescriber that the WAC information is available on this website. The Act defines a pharmaceutical marketer as anyone “employed by or under contract to represent a pharmaceutical manufacturing company.”
Attorneys in Kelley Drye’s Food & Drug Litigation Group are monitoring developments across the country regarding drug pricing and have significant experience defending against claims alleging violations of various drug pricing statutes.
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