Two top pharmaceutical trade groups have asked a federal judge to block a controversial Nevada law that requires certain diabetes drugmakers to disclose information to the state about the costs of making and marketing the medications. In a lawsuit filed Sept. 1 in the federal district court in Las Vegas, the Pharmaceutical Research and Manufacturers of America (PhRMA), a nonprofit advocacy group representing the pharmaceutical industry, and Biotechnology Innovation Organization (BIO) argue that the state law is unconstitutional and violates federal patent and trade secret rights.

The law, signed by Nevada Gov. Brian Sandoval in June, is an attempt to curb soaring prescription drug prices or, at a minimum, provide consumers with information about why the costs are so high. It requires manufacturers who have raised diabetes drugs' list prices by a certain amount to report that information along with the rebates they provided to the state Department of Health and Human Services.

The law also goes after pharmacy benefit managers, requiring them to report what rebates they negotiate with diabetes drug manufacturers and what rebates they keep for themselves. PBMs are middlemen in the pharmaceutical industry that process prescriptions for the insurance companies that pay for the drugs. The lawsuit, however, does not attack the statutory provisions governing disclosures by pharmacy benefit managers.