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Johnson & Johnson on Tuesday sued the Biden administration over Medicare’s aloof powers to slice drug prices, making it the third pharmaceutical company to project the controversial provision of the Inflation Discount Act.
The lawsuit filed in federal district court in Recent Jersey argues the Medicare negotiations violate the First and Fifth Amendments of the U.S. Constitution.
Earlier suits introduced individually by Merck and Bristol Myers Squibb, as properly as by the U.S. Chamber of Commerce and PhRMA, the pharmaceutical industry’s most energetic lobbying community, made the same arguments.
J&J’s criticism asks a mediate to dam the U.S. Health and Human Services Department from compelling the drugmaker to participate on this system.
The suit goals to discontinue the “innovation-destructive congressional overreach that threatens the US’ primacy in rising transformative therapies and in sufferers’ salvage admission to to those treatments,” according to J&J.
President Joe Biden’s Inflation Discount Act, which passed in 2022 by a slim celebration-line vote, empowered Medicare to barter drug prices for the first time on this system’s six-decade history. The coverage goals to plan medication more sensible for older American citizens but will likely decrease pharmaceutical industry earnings.
The Health and Human Services Department didn’t straight away answer to CNBC’s quiz for commentary.
J&J stated its drug Xarelto, which treats blood clots and reduces the possibility of stroke, will likely be enviornment to Medicare impress negotiations in 2023.
J&J argues that Medicare negotiations “inflict an uncompensated bodily taking” of the company’s drug and in truth forces J&J to supply salvage admission to to Xarelto on phrases region by the federal authorities that the company “would never voluntarily” conform to.
The company final year booked $2.47 billion in earnings from Xarelto.
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