California’s attempt to curb drug prices, Proposition 61, could cause drug companies including Merck (MRK) , Pfizer (PFE) and Johnson & Johnson (JNJ) to raise prices, according to analysts, and the companies are already taken steps to block the bill’s passage.
Proposition 61 is a proposal Californians will vote on in this November’s election that requires state agencies to pay the same prices the U.S. Department of Veterans Affairs pays for medication - approximately 50% less than list prices.
The federal department already pays less for most prescription drugs, so the bill will likely be a boon to patients in the state. As a result, Proposal 61 has received overwhelming support from citizens and visible politicians like former Democratic presidential candidate and Vermont Senator Bernie Sanders, but not so much love from large drug companies.
