Novartis Challenges Constitutionality of IRA With Lawsuit

Novartis has joined the chorus of pharma voices claiming the Inflation Reduction Act’s (IRA) Medicare Part D drug price negotiation provision exceeds Congress’s lawful authority.

Novartis, whose Entresto (sacubitril/valsartan) is one of 10 drugs slated for the first round of negotiation, sums up the sentiment and arguments of all the lawsuits brought by the various other drugmakers, opening its complaint with, “This case challenges an unprecedented and unconstitutional attempt to compel the nation’s drug manufacturers to sell their products at prices dramatically below their market value.”

The complaint further explains its position against the law, saying that under the IRA, “manufacturers are forced to enter into a sham ‘negotiation’ process, where they are obligated to accept a ‘maximum fair price’ for their most popular drugs that is far below the prevailing market price — or else pay a draconian ‘tax’ amounting to tens of billions of dollars.”

Read the Novartis complaint here.

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