Subd. 1. Prohibition.

No manufacturer shall impose, or cause to be imposed, an excessive price increase, whether directly or through a wholesale distributor, pharmacy, or similar intermediary, on the sale of any generic or off-patent drug sold, dispensed, or delivered to any consumer in the state.

Subd. 2. Excessive price increase.

A price increase is excessive for purposes of this section when:

1. (1) the price increase, adjusted for inflation utilizing the Consumer Price Index, exceeds:

   1. (i) 15 percent of the wholesale acquisition cost over the immediately preceding calendar year; or
   2. (ii) 40 percent of the wholesale acquisition cost over the immediately preceding three calendar years; and

2. (2) the price increase, adjusted for inflation utilizing the Consumer Price Index, exceeds $30 for:

   1. (i) a 30-day supply of the drug; or
   2. (ii) a course of treatment lasting less than 30 days.

Subd. 3. Exemption.

It is not a violation of this section for a wholesale distributor or pharmacy to increase the price of a generic or off-patent drug if the price increase is directly attributable to additional costs for the drug imposed on the wholesale distributor or pharmacy by the manufacturer of the drug.