SB 1402 Summary

• Prohibits manufacturers and wholesale distributors from engaging in "price gouging" on essential off-patent or generic drugs, defined as unconscionable price increases not justified by production costs or expanded access.

• Defines "essential off-patent or generic drug" as prescription drugs with expired exclusive marketing rights, designated as essential by WHO or HHS, actively manufactured by three or fewer U.S. manufacturers, and available in Arizona.

• Allows the State Medical Assistance Program (Arizona Health Care Cost Containment System) to notify the Attorney General of price increases of 50% or more within one year, or when a 30-day supply or full course of treatment exceeds $80 at wholesale cost.

• Requires manufacturers to submit statements within 45 days explaining cost increases and expenditures to expand drug access, and authorizes the Attorney General to compel production of relevant records.

• Authorizes courts to enjoin violations, restore consumer payments, require manufacturers to provide drugs at pre-violation prices for up to one year, and impose civil penalties up to $10,000 per violation after providing the manufacturer an opportunity to justify the price increase.