Nevada Addresses SB 539’s Most Significant Flaws

PhRMA, BIO and the State of Nevada Agree to Dismiss SB 539 Litigation After Protections Created for Proprietary Information

Washington, DC (June 29, 2018) – Judge James C. Mahan of the United States District Court for the District of Nevada entered an order yesterday dismissing without prejudice litigation brought by the Pharmaceutical Research and Manufacturers of America (PhRMA) and the Biotechnology Innovation Organization (BIO) against the State of Nevada challenging provisions of SB 539 on constitutional grounds.

All parties agreed to the voluntary dismissal after regulatory changes became effective that   include procedures to safeguard manufacturers’ sensitive business information and after the parties agreed to a Joint Status Report that stated the parties’ collective views regarding the regulatory changes. The Joint Status Report is available here, and the Court’s dismissal order is available here.

“The regulations are essential to protecting the proprietary information that forms the foundation of the competitive environment in which we operate and determines our ability to innovate and get patients the treatments they need,” said James C. Stansel, PhRMA Executive Vice President and General Counsel. “Without these regulations and the Joint Status Report, Nevada’s law would have conflicted with the federal patent laws as well as laws protecting trade secrets.”

The agreement to voluntarily dismiss the SB 539 lawsuit is without prejudice and with a full reservation of rights. If there is erosion of the trade secret protections that were adopted in the final regulation or from the interpretations in the Joint Status Report, the voluntary dismissal allows the parties to reinstitute the litigation. 

“We can now work together with stakeholders on comprehensive solutions that will benefit patients by reducing their out-of-pocket costs for medicines while also maintaining strong innovation incentives. We will continue to have thoughtful conversations with legislators, patients and others in Nevada on these issues,” added Tom Dilenge, President, Advocacy, Law & Public Policy, BIO.

About PhRMA
The Pharmaceutical Research and Manufacturers of America (PhRMA) represents the country’s leading innovative biopharmaceutical research companies, which are devoted to discovering and developing medicines that enable patients to live longer, healthier, and more productive lives. Since 2000, PhRMA member companies have invested more than $900 billion in the search for new treatments and cures, including an estimated $79.6 billion in 2018 alone.

Connect with PhRMA
For information on how innovative medicines save lives, please visit:

About BIO
BIO is the world's largest trade association representing biotechnology companies, academic institutions, state biotechnology centers and related organizations across the United States and in more than 30 other nations. BIO members are involved in the research and development of innovative healthcare, agricultural, industrial and environmental biotechnology products. BIO also produces the BIO International Convention, the world’s largest gathering of the biotechnology industry, along with industry-leading investor and partnering meetings held around the world. BIOtechNOW is BIO's blog chronicling “innovations transforming our world” and the BIO Newsletter is the organization’s bi-weekly email newsletter.

This website uses cookies and other tracking technologies to optimize performance, preferences, usage, and statistics. By clicking “Accept All”, you consent to store on your device the cookies and other tracking technologies that require consent. You can tailor or change your preferences by clicking “Manage My Cookies”. You can check our privacy policy for more information.