By Christian Manuel Briceno
Aug 30, 2023, 18:40 PM EDT
With the recent publication of the names of the first 10 drugs subject to negotiation by Medicare, it should be remembered that several pharmaceutical companies have sued the government of President Joe Biden, arguing that the measure will reduce the profits they obtained from the sale of these drugs.
Among the companies that have sued the Biden administration to stop the negotiation process are:
1) Merck
2) Johnson & Johnson
3) Bristol-Myers Squibb
4) Astellas Pharma
Industry lobby groups such as phRMA (the largest in the pharmaceutical industry), as well as the United States Chamber of Commerce, have also filed their own lawsuits against the Joe Biden government.
According to information from the CNBC news portal, the lawsuits argue that the Medicare negotiations are “unconstitutional”, since they would force drug manufacturers to sell their drugs below market prices.
The companies have claimed that these negotiations violate the Fifth Amendment of the Constitution, and that they require the Joe Biden government to pay reasonable compensation for private property taken for public use.
In addition, the plaintiff companies have argued that the bargaining process violates the drug makers’ First Amendment free speech rights, essentially forcing the companies to accept that Medicare is negotiating a fair price.
They also argue that the talks violate the Eighth Amendment by imposing an excessive fine if drugmakers refuse to participate in the process.
These lawsuits have been filed in courts in various parts of the country. As reported by CNBC, legal experts say that the pharmaceutical industry hopes to obtain conflicting rulings from federal appeals courts, which could accelerate the problem until it reaches the Supreme Court, where many companies want to take their legal battle.
“As we move forward, we will see this through to the end, which means we will take it through the District Court and, if necessary, to the Circuit Court and ultimately to the Supreme Court,” said the CEO of Merck, Robert Davis, during an earnings call earlier this month. “So that really is the strategy,” according to CNBC.
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