REFILE-US court overturns New Hampshire prescription drug law
(Corrects to remove Quintiles stock symbol, as company is now private)
BOSTON, April 30 (Reuters) - A U.S. District Court judge on Monday overturned a New Hampshire law that was the first in the nation to ban the commercial use of information on what drugs physicians prescribe.
Judge Paul Barbadoro of the U.S. District Court in Concord ruled in favor of IMS Health Inc. (RX.N) and Verispan, two companies that collect prescription data from pharmacies and sell it to drug makers, researchers and investment firms.
New Hampshire Attorney General Kelly Ayotte had argued the state's Prescription Information Law aimed to protect the privacy of doctors, end inappropriate marketing of drugs to physicians and cut swelling health-care costs in the state.
IMS Health and Verispan, which is a joint venture of Quintiles Transnational Corp. and McKesson Corp. (MCK.N), had argued the 11-month-old law violated First Amendment free-speech protections.
"Ordinarily, states should be given wide latitude to choose among rational alternatives when they act to benefit the public interest," Barbadoro said in a 54-page ruling.
"However, when states adopt speech restrictions as their method, courts must subject their efforts to closer scrutiny."
He said the law "restricts constitutionally protected speech without directly serving the state's substantial interests" and "alternatives exist that would achieve the state's interests as well or better without restricting speech."
The case was watched closely by the $272 billion U.S. pharmaceuticals industry, which said IMS and other data mining firms provide crucial information to research databases.
The case was seen as possibly setting a precedent for states such as Nebraska, Nevada and Missouri, which have introduced similar bills.
"We know some states are still considering legislation modeled on the New Hampshire law," Robert Steinfeld, IMS senior vice president and general counsel, said in a statement.
"This important decision by Judge Barbadoro clarifies that the Constitution protects the dissemination of provider-identifiable information, which is also vital to ensure patient safety and improve health care quality."
