Court rules for Vermont prescription data restrictions

US-- A Vermont law banning the use of prescriber-identifiable data for marketing purposes has been upheld by the courts – dealing another major blow to the research companies who sell this information to drugs firms.

IMS Health, SDI (formerly Verispan) and Wolters Kluwer Health (WKH) said they were “disappointed” by the decision and were considering their legal options.

The law doesn't ban them from collecting information on the prescribing habits of physicians, but prevents them from selling it on to pharmaceutical manufacturers for the purposes of marketing new drugs to doctors – unless the doctor consents to having their information used in that way.

Legislators believe the new rules will prove effective in lowering healthcare costs by making it harder for drugs companies to sway physicians towards newer branded products over cheaper generic rivals.

But according to IMS, SDI and WKH: “These types of laws are not only unconstitutional but they do nothing to advance public health. The key to improving healthcare quality and reducing costs and variability in treatment is access to more information – not less.”

The District Court ruling will be troubling for the healthcare data firms, coming at a time when 16 other states are considering similar restrictions on the use of prescriber-identifiable data.

Such laws are already in force in New Hampshire, after an appeals court overturned an earlier decision to strike down the legislation. Maine also has a law pending.

IMS and SDI have petitioned the Supreme Court for a review of the appeals court decision on the grounds that it “jeopardises both speech and commerce, including market research, data collection and dissemination, financial analysis, consumer studies, credit verification, and important publishing activities”.

A decision on the review is expected before the Supreme Court's summer recess in July.

Author: Brian Tarran