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Administrative/Regulatory,
Health Care & Hospital Law

Jan. 10, 2018

SB 17: Drug price transparency rules

Senate Bill 17 requires pharmaceutical manufacturers that have a wholesale acquisition cost of more than $40 for a course of therapy to give 60 days' notice to state and health insurers if they plan to raise the price of a medication by 16 percent or more over a two-year period. It also requires pharmaceutical companies to justify the increased prices.

Michael L. Fuller

Partner
Knobbe Martens Olson & Bear LLP

Email: mfuller@kmob.com

Michael is co-managing partner of the San Diego office and chair of the firm's biotechnology practice group. He specializes in IP matters relating to biotech and bioinformatics innovations.

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Daniel A. Kamkar

Associate
Knobbe Martens Olson & Bear LLP

Email: daniel.kamkar@knobbe.com

Daniel is an associate in the San Diego office. He assists various clients in a wide range of technological fields including pharmaceuticals, clean energy, polymer sciences, lasers and other areas of chemistry and physics.

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On Oct. 9, 2017, Gov. Jerry Brown signed drug price transparency bill Senate Bill 17 into law. This law requires pharmaceutical manufacturers that have a wholesale acquisition cost of more than $40 for a course of therapy to give 60 days' notice to state and health insurers if they plan to raise the price of a medication by 16 percent or more over a two-year period. SB 17 also requires pharmaceutical companies to justify the increased prices. Under SB 17, "pharmaceuti...

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