Merck has filed a lawsuit challenging a new program introduced under the Inflation Reduction Act, claiming that it violates the US Constitution and will result in pharmaceutical companies being forced to negotiate drug prices below market rates. In response, the company stated, "This is not 'negotiation.' It is tantamount to extortion."
The Biden administration's program is designed to potentially save US citizens $25 billion annually by 2023 through drug price negotiations for medications covered by Medicare. The current cost of prescription drugs in the US is higher than in any other country. This lawsuit from Merck is the first of its kind by a drug manufacturer to oppose the price negotiation program.
The company has expressed its willingness to take the matter to the Supreme Court if needed. In response to the lawsuit, the White House criticized the actions of Big Pharma, stating that they often charge Americans significantly more than customers in other countries for the same medications. Spokesperson Karine Jean-Pierre affirmed, "We are confident in our position and believe we will prevail in court.There is nothing in the Constitution that prohibits Medicare from negotiating lower drug prices."
English (US)