PORTLAND, Ore. – Oregon’s long-debated drug price transparency law has survived a major legal challenge. On Aug. 26, 2025, the 9th U.S. Circuit Court of Appeals upheld HB 4005, legislation requiring pharmaceutical companies to disclose significant price hikes and financial details for drugs costing more than $100 per month.
The ruling allows Oregon to continue publicly posting the information, even when companies argue it may involve sensitive or proprietary material.
Background of the Law
Passed in 2018, HB 4005 was designed to shine light on the rising costs of prescription drugs, which burden both patients and state health programs. The law requires drug makers to report:
Also Read
-
Substantial increases in drug prices
-
Pricing information for drugs over $100 per month
-
Financial data explaining cost structures
The intent is to give policymakers, consumers, and insurers greater visibility into the forces driving high drug prices.
Industry Pushback
In 2019, the Pharmaceutical Research and Manufacturers of America (PhRMA) sued the state, arguing that HB 4005 violated the First Amendment (free speech) and Fifth Amendment (protection of property rights). PhRMA claimed that forcing companies to disclose proprietary information was unconstitutional and could unfairly portray drug makers as solely responsible for high costs.
In February 2024, U.S. District Judge Michael Mosman sided with PhRMA, ruling that Oregon’s law infringed on both free speech and property protections. That decision temporarily blocked enforcement of HB 4005.
Oregon Appeals and Gains Support
Oregon appealed, gaining support from 21 state attorneys general, who filed a joint brief arguing that drug price transparency laws could help states better understand and manage soaring healthcare costs.
They noted that rising prescription prices strain public health programs such as Medicaid and hit patients hardest when insurance coverage falls short.
Appeals Court Decision
The three-judge panel of the 9th Circuit ultimately overturned the district court ruling, siding with Oregon. The judges determined that the data required under HB 4005 largely consists of commercial marketing information that companies already share in some form with regulators, investors, or the public.
By that reasoning, the court said, the law does not unlawfully compel speech or confiscate property. Instead, it provides transparency that serves the public interest.
Broader Implications
While PhRMA expressed disappointment, the decision reflects a growing national trend. California, Vermont, Maine, New Jersey, Utah, and other states already have similar laws requiring disclosure of drug price increases and cost data.
PhRMA warns that such laws risk exposing trade secrets and may oversimplify the issue of drug pricing by focusing primarily on manufacturers rather than insurers, pharmacy benefit managers, and the broader supply chain.
Still, with Oregon’s law now upheld and strong multistate support behind it, experts believe more states will follow suit.
Looking Ahead
For patients and policymakers, the ruling represents a win for accountability and transparency in the pharmaceutical industry. By upholding HB 4005, the court has given Oregon a green light to continue publishing detailed drug pricing data, potentially offering insights that could shape future reforms.
