Bristol Myers Squibb on Friday sued the Biden administration over Medicare’s latest powers to chop drug prices, the third such lawsuit against this system in days.
A lawsuit filed in federal district court in Latest Jersey alleges Medicare negotiations violate the First and Fifth Amendments to the US Structure.
Bristol Myers Squibb asked the court to declare the scheme unconstitutional and stop the Department of Health and Human Services from forcing the corporate to enter into negotiations.
Bristol Myers Squibb’s arguments mirror those made last week by Merck, the primary company to sue the federal government over drug negotiations. The US Chamber of Commerce also sued HHS over this system, making similar arguments.
The Inflation Reduction Act, passed in 2022 by a narrow party-line vote, authorized Medicare to barter drug prices for the primary time in this system’s sixty-year history. The law is a serious pillar of the Biden administration’s efforts to manage rising drug prices and has been a serious victory for the Democratic Party.
Bristol Myers Squibb said its blood thinner Eliquis, used to treat blood clots and strokes, might be under negotiation this 12 months. The corporate generated $11.8 billion in revenue from Eliquis last 12 months, which is about 25% of the corporate’s $46 billion in total revenue in 2022.
The drugmaker also said that Opdivo, used to treat several varieties of cancer, might be subject to Medicare negotiations in the long run. Opdivo generated $8.2 billion in sales for the corporate in 2022, which was about 18% of the drugmaker’s total revenue that 12 months.
Bristol Myers Squibb argued that the federal government was forcing the corporate to enter into negotiations and eventually comply with a significantly reduced price. The corporate says this violates Fifth Amendment protections against government seizure of personal property without just compensation.
The drugmaker also claimed that HHS was forcing the corporate to publicly present this system as a good price negotiation. The corporate called the negotiations a sham and claimed the federal government was forcing the drugmaker to “follow its preferred political message” in violation of the First Amendment.
HHS secretary Xavier Becerra, in an announcement following Merck’s lawsuit last week, promised to vigorously defend the inflation reduction bill in court, saying: “The law is on our side.”
White House Press Secretary Karine Jean-Pierre, also in an announcement following Merck’s lawsuit, said the Biden administration was confident it will win in court.
“There may be nothing within the Structure that stops Medicare from negotiating lower drug prices,” said Jean-Pierre.