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Bristol Myers Squibb takes government to court over Medicare’s drug price negotiations
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Pharmaceutical company Bristol Myers Squibb has sued the Biden administration over Medicare's new authority to lower drug prices.
This marks the third legal challenge against the program within a few days.
The lawsuit, filed in a federal district court in New Jersey, argues that the Medicare negotiations violate the First and Fifth Amendments of the US Constitution.
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Bristol Myers Squibb is seeking a court declaration that deems the program unconstitutional and aims to prevent the Department of Health and Human Services (HHS) from compelling the company to negotiate.
The firm’s arguments parallel those made by Merck, the first company to sue the federal government over drug negotiations.
It also resonated with the US Chamber of Commerce, which also filed a lawsuit against HHS with similar claims.
The Inflation Reduction Act passed in 2022 with a narrow party-line vote, granted Medicare the authority to negotiate drug prices for the first time in its history spanning six decades.
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The law represents a key element of the Biden administration's efforts to curb the escalating costs of prescription drugs and was a significant victory for the Democratic Party.
Bristol Myers Squibb stated its blood thinner, Eliquis, used to treat clots and strokes, will be subject to Medicare negotiations this year.
The drug accounted for approximately $11.8 billion in revenue in 2022, about 25 percent of its total revenue.
The company also mentioned that its cancer treatment drug, Opdivo, which generated $8.2 billion in sales in 2022, will be subject to Medicare negotiations in the future.
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The pharmaceutical company argues the federal government is coercing it to participate in negotiations and eventually agree to a significantly discounted price.
Bristol Myers Squibb says this violates the Fifth Amendment's protection against the government seizing private property without just compensation.
Additionally, the company claims that HHS is compelling it to publicly portray the negotiations as a fair pricing discussion.
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Bristol Myers Squibb characterizes the negotiations as a sham and alleges that the government is forcing it to echo preferred political messaging, which it believes infringes upon the First Amendment.
In response to Merck's lawsuit, HHS Secretary Xavier Becerra defended the Inflation Reduction Act in court, asserting: "The law is on our side."
White House Press Secretary Karine Jean-Pierre expressed the administration's confidence in winning the legal battles.
She said: "There is nothing in the Constitution that prevents Medicare from negotiating lower drug prices."
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