AZ SB1387

Establishes the Prescription Drug Affordability Board as an independent state agency with 5 members and 3 alternates appointed by the governor to regulate prescription drug prices in Arizona.

Requires the board to identify and review brand-name drugs, biologics, biosimilars, and generic drugs meeting affordability thresholds (e.g., brand drugs with $30,000+ annual launch cost or $3,000+ annual price increases) and determine whether to conduct affordability reviews.

Authorizes the board to establish upper-payment limits on prescription drug purchases and payor reimbursements if affordability challenges are found, applying to all state-sponsored and state-regulated health plans and health care providers dispensing drugs in Arizona.

Creates a Prescription Drug Affordability Stakeholder Council with 20 members representing patients, providers, insurers, manufacturers, researchers, and other healthcare stakeholders to provide input on board decisions.

Establishes the Prescription Drug Affordability Fund financed by annual assessments on manufacturers based on their share of gross drug revenues in Arizona; fund monies support board operations and implementation costs.