essential drugs; price increases; limits.

SB 1797 prohibits manufacturers and distributors from engaging in "price gouging" on specific essential off-patent or generic drugs, defined as drugs without patent protection, listed by WHO or the U.S. as essential, and sold by few manufacturers. It directly affects drug companies selling these medications in Arizona, requiring them to justify price increases exceeding 50% within a year or exceeding $80 for basic treatment (e.g., 30-day supply). The state’s Medicaid program can trigger investigations for such increases, prompting manufacturers to submit cost breakdowns within 45 days. If violations are confirmed, the attorney general can seek court orders for restitution, injunctions, or civil penalties up to $10,000 per violation. The bill focuses on transparency and accountability for price hikes impacting affordability, not on altering drug approval or insurance coverage.