Decision soon in N.H. prescription case - US judge

Last Updated: 2007-04-11 14:08:53 -0400 (Reuters Health)

CONCORD, N.H. (Reuters) - A U.S. District Court judge said on Wednesday he would rule within 30 days on whether to overturn a New Hampshire law banning commercial use of prescription data from physicians.

IMS Health and Verispan, two companies that collect prescription data from pharmacies and sell it to drug makers, researchers and investment firms, are challenging the law in a potentially precedent-setting case being watched closely by other states considering such laws.

Judge Paul Barbadoro of the U.S. District Court in Concord went over a draft of the background facts of the case with lawyers representing both parties, although he made clear not to make any inferences of his opinion based upon the draft.

"If I were to sustain the law or overturn it, I would write the same background," he said.

The outcome could set a precedent for states such as Nebraska, Nevada and Missouri, which have introduced similar bills.

New Hampshire authorities say the law aims to protect the privacy of doctors, end inappropriate marketing of drugs to physicians and cut swelling health care costs.

Its critics say IMS and other data mining companies provide crucial information to national research databases and that the law violates First Amendment free-speech protections.

Verispan is a joint venture of Quintiles Transnational Corp. and McKesson Corp.