Prescription drug data mining law struck down

Business Law

The Supreme Court ruled Thursday that states cannot limit drug manufacturers' use of information about which prescription drugs doctors like to prescribe.

The court voted 6-3 to strike down a Vermont data-mining law aimed at boosting the use of generic drugs by controlling the flow of information about brand-name medications. The ruling imperils similar laws in Maine and New Hampshire.

The laws prevent the sale of information about individual doctors' prescribing records without the doctors' permission.

Pharmacies get that information when they fill prescriptions. They sell the information, without patient names, to data mining companies that, in turn, provide drug makers with a detailed look at what drugs doctors choose for their patients.

Drug company sales representatives can use the information to tailor their pitch to individual doctors.

Justice Anthony Kennedy said in his majority opinion that the Vermont law violates the speech rights of the data-mining and pharmaceutical companies.

Kennedy said that law grew out of a desire to control health care costs by increasing the use of generic drugs. But he said, "the state cannot engage in content-based discrimination to advance its own side of a debate."

In dissent, Justice Stephen Breyer said the law should have been upheld as a constitutional regulation of business activity. Justices Ruth Bader Ginsburg and Elena Kagan also signed on to Breyer's dissent.

Related listings

  • Banks lose battle to delay cap on invisible fee

    Banks lose battle to delay cap on invisible fee

    Business Law 06/09/2011

    Merchants trumped bankers in a battle for billions Wednesday as the Senate voted to let the Federal Reserve slash fees that stores pay financial institutions when customers pay with debit cards. Whether consumers will see any of that money remains to...

  • Court says university, company co-owners of patent

    Court says university, company co-owners of patent

    Business Law 06/06/2011

    Ownership of a patent for technology to detect HIV levels in patients' blood was correctly split between Stanford University and the pharmaceutical giant Roche, the Supreme Court ruled Monday.By a 7-2 vote, the high court upheld a lower court's decis...

  • W.Va. court rejects bid to halt Massey Energy sale

    W.Va. court rejects bid to halt Massey Energy sale

    Business Law 05/31/2011

    The West Virginia Supreme Court has declined to issue an order barring Massey Energy shareholders from voting on a proposed $7.1 billion sale to rival coal producer Alpha Natural Resources.The court says in a ruling issued Tuesday it lacks jurisdicti...

New York Commercial Litigation Law Firm - Woods Lonergan PLLC

Founded in 1993 by Managing Partner James F. Woods, Woods Lonergan PLLC has built a strong reputation as a resourceful and industrious firm that provides clients with clear, concise, and straightforward answers to their most challenging legal issues. Partner Lawrence R. Lonergan, who joined the firm in 2008, has been a friend and colleague to Mr. Woods for over 40 years and shares the same business philosophy. Woods Lonergan PLLC’s collective experience and expertise enables the firm to expeditiously and effectively analyze the increasing challenges clients face in an evolving business and legal world, in many instances, avoiding unnecessary time and expense to our clients. Our mission is simple: provide cutting-edge expertise and sound advice in select areas of the law for corporate and business clients. We thrive on providing each client with personalized attention, forceful representation, and a collaborative team effort that embraces collective knowledge.

Business News

New York & New Jersey Family Law Matters We represent our clients in all types of proceedings that include termination of parental rights. >> read