Drug Companies Spend Millions to Fight Price Cap Laws

The pharmaceutical industry is preparing to spend tens of millions of dollars to convince California voters to reject what would be the strictest state law in the nation to cap drug prices.

California voters will consider a ballot initiative during the presidential election next year that would force drug makers to sell drugs to state programs at the lowest price, which is now given to the Department of Veterans Affairs. Advocates in Ohio turned in enough signatures last week to get a similar measure on the ballot in 2016.

The industry is already waging a lobbying war against the California measure, as pharmaceutical giants have devoted nearly $38 million so far to the effort. the industry is waiting to see how things develop in Ohio before ramping up activity there.