Bristol Myers’, J&J’s Challenges to Medicare Drug Price Negotiations Squashed

Big pharma again came out on the losing end of a major court battle challenging the Biden administration’s Inflation Reduction Act (IRA) drug price negotiations, as a New Jersey federal judge Monday rejected legal challenges from Bristol Myers Squibb and Johnson & Johnson.

The companies argued that negotiating drug prices with the government violated their right to freedom of speech and were a requirement to participate in Medicare and Medicaid that they deemed unconstitutional.

U.S. District Judge Zahid Quraishi’s granting of summary judgment against the two drug behemoths squashes their arguments that the IRA’s “forced sales are functionally equivalent to physically seizing the medicine from the warehouse,” and that the goal of the program “is for the Government to avoid paying just compensation by paying far less than the fair market price.”

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