Colorado became the first state in the U.S. to pass a law capping the price of a prescription drug, targeting Enbrel, an immunosuppressant used for autoimmune diseases. The law aimed to lower costs for patients by limiting the price of the drug, which is manufactured by Amgen.
However, a federal appeals court intervened, ruling that the state's price cap was unconstitutional. The court found that the law violated federal patent and pricing regulations, effectively blocking its enforcement.
The decision has implications for other states considering similar measures to control drug prices. Colorado had argued that the cap was necessary to protect consumers from high costs, but the court sided with Amgen's challenge.
As of July 2026, the ruling stands, and no other state has successfully implemented a similar price cap on a specific drug. The case highlights ongoing tensions between state efforts to regulate drug prices and federal authority.
