Bristol Myers Squibb on Friday sued the Biden administration over Medicare’s recent powers to slash drug prices, the third such lawsuit to be filed against this system in a matter of days.
The lawsuit filed in federal district court in Recent Jersey argues the Medicare negotiations violate the First and Fifth Amendments of the U.S. Structure.
Bristol Myers Squibb has asked the court to declare this system unconstitutional and forestall the Health and Human Services Department from forcing the corporate to enter negotiations.
Bristol Myers Squibb’s arguments mirror those lodged last week by Merck, the primary company to sue the federal government over the drug negotiations. The U.S. Chamber of Commerce has also sued HHS over this system with similar arguments.
The Inflation Reduction Act, passed in 2022 in a narrow party-line vote, empowered Medicare to barter drug prices for the primary time in this system’s six-decade history. The law is the central pillar within the Biden administration’s efforts to manage rising drug prices and was a serious victory for the Democratic Party.
Bristol Myers Squibb said its blood thinner Eliquis, used to treat clots and strokes, shall be subject to the negotiations this yr. The corporate generated $11.8 billion in revenue from Eliquis last yr, about 25% of the corporate’s $46 billion in total revenue for 2022.
The drugmaker also said Opdivo, used to treat several kinds of cancer, shall be subject to the Medicare negotiations in the longer term. Opdivo generated $8.2 billion in sales for the corporate in 2022, which made up about 18% of the drugmaker’s total revenue for that yr.
Bristol Myers Squibb argued the federal government is forcing the corporate to enter negotiations and eventually conform to a heavily discounted price. The corporate claims this violates Fifth Amendment protections against the federal government seizing private property without just compensation.
The drugmaker also claimed HHS is forcing the corporate to publicly present this system as a negotiation over a good price. The corporate called the negotiations a sham and claimed the federal government is forcing the drugmaker to “parrot its preferred political messaging” in violation of the First Amendment.
HHS Secretary Xavier Becerra, in a press release after Merck’s lawsuit last week, vowed to vigorously defend the Inflation Reduction Act in court, saying, “The law is on our side.”
White House Press Secretary Karine Jean-Pierre, also in a press release after Merck’s suit, said the Biden administration is confident it can win in court.
“There’s nothing within the Structure that stops Medicare from negotiating lower drug prices,” Jean-Pierre said.
