US state seeks lowest prices from drugmakers

US state governor Bill Janklow of South Dakota has asked his statelegislature to approve a bill that would require pharmaceutical companies to give all hospitals, pharmacies and retailers operating in the state the lowest price offered there. While drug companies could still offer discounts for high-volume purchases, these low rates could not be made available to only one group of buyers, reports the Associated Press.

Senator Tim Johnson, who represents South Dakota, applauded the governor's action and noted that the proposal is similar to a bill he has presented to the Congress. Implementing price-control legislation state-by-state might be difficult, he told the AP, but it could prod the federal government to act.

While a spokesman for the Pharmaceutical Research and Manufacturers of America told the Marketletter that his organization now wants to look at the details of the governor's proposal, a PhRMA spokesman earlier told the press service that the plan might not be the best move for patients. Competitive discounts mean more patients are getting lower prices on prescription drugs, he said, and Gov Janklow's proposal tinkers with the competitive private marketplace, "which is a bad idea."