US Government , Facing Lawsuit Over , Drug Price Negotiation Program.
On June 6, Merck announced a lawsuit against the
United States arguing that the Inflation Reduction
Act violates both the Fifth and First Amendments.
NBC reports that Merck is seeking
an injunction of the Inflation Reduction
Act's drug price negotiation program.
The drugmaker argues that the program
would force the company to negotiate
prices for drugs at below market rates.
NBC reports that people in
the U.S. pay more for medication
than any other country in the world.
NBC reports that people in
the U.S. pay more for medication
than any other country in the world.
The pharmaceutical industry has argued that resulting
loss of profits from the new law would force them
to halt the development of new treatments.
The pharmaceutical industry has argued that resulting
loss of profits from the new law would force them
to halt the development of new treatments.
The IRA uses severe penalties to
requisition medicines while refusing
to pay their fair value—and then coerces
manufacturers to smile, play along,
and pretend it is all part of
a ‘fair’ and voluntary exchange, Merck statement, via NBC.
The IRA uses severe penalties to
requisition medicines while refusing
to pay their fair value—and then coerces
manufacturers to smile, play along,
and pretend it is all part of
a ‘fair’ and voluntary exchange, Merck statement, via NBC.
The new laws would require written agreements conceding
that the prices are fair, which Merck argues would
violate the company's First Amendment protections.
The new laws would require written agreements conceding
that the prices are fair, which Merck argues would
violate the company's First Amendment protections.
NBC reports that the first Medicare drug price
negotiation is scheduled to start in September.
New prices on what the CMS identifies as the ten
most costly drugs would go into effect in 2026.
According to NBC, those price changes
are estimated to cut industry sales
by $4.8 billion in the first year alone