One hot topic in the news over the last several months has been Nevada’s strict law requiring manufacturers of diabetic drug, as well as brokers in the pharmaceutical business called pharmacy benefit managers, to report certain data to the state, including profits.
The idea behind the law is to make sure these companies are held publicly accountable for what have been consistent and significant price increases in these types of drugs. It will also serve to make the broader public aware of why the price of their medication, which they need in order to survive, keeps going up, leaving less money in their wallets.
The law had hit a snafu when several pharmaceutical companies sued to block its implementation. However, these companies recently withdrew their suit because Nevada implemented regulations that will enable the companies to keep some of the data out of the public eye if they are able to demonstrate that the information is a protected trade secret.
This case illustrates the sometimes thorny relationship between regulatory compliance with rules designed to protect the public and the need on the part of a business to protect its trade secrets so the business can continue to be profit.
Short of filing suit to block the implementation of a law or regulation, a business will often need creative business law solutions when balancing their need to run a business against their obligation to follow the rules and regulations of the government. Otherwise, a business either runs the risk of not being able to continue to grow or the risk of being accused of significant legal or ethical lapses and then being punished accordingly.
