Medicare Prevails in Lawsuit Against AstraZeneca Over Drug Price Negotiation

AstraZeneca Lawsuit on Medicare Drug Price Negotiation Program

AstraZeneca’s Lawsuit Outcome

A federal judge dismissed AstraZeneca’s lawsuit contesting Medicare’s drug price negotiation program. The judge ruled that the pharmaceutical company lacked standing to challenge the law that established the program and did not possess a constitutionally protected property interest in the matter.

First Decision on Pharmaceutical Lawsuits

The recent decision marks the first ruling on several lawsuits filed by pharmaceutical companies against certain provisions of the Inflation Reduction Act (IRA). Many of these lawsuits raise constitutional issues similar to those raised by AstraZeneca.

Farxiga’s Inclusion in Drug Negotiation List

Farxiga, a prominent AstraZeneca drug approved for various conditions, is among the first 10 drugs selected by CMS for negotiation. These drugs, lacking generic competition, accounted for over $50 billion in Medicare Part D costs in a recent period.

AstraZeneca’s Claims

AstraZeneca contended that placing Farxiga on the negotiation list violated the federal Administrative Procedure Act. The company argued that this action could harm its ability to innovate new uses for the drug, potentially limiting patient access to new treatments. AstraZeneca also challenged the constitutionality of the IRA.

Judge’s Opinion

Chief Judge Colm Connolly expressed skepticism about AstraZeneca’s claimed harm, stating that the alleged injury was speculative and contingent on several factors. He also rejected the company’s argument that the law violated its Fifth Amendment rights, emphasizing that no entitlement exists to sell drugs to the government at specific prices.

AstraZeneca’s Response

In response to the court’s ruling, AstraZeneca stated that it is evaluating its next steps. The company expressed disappointment over the potential impact on patient access to future medications and emphasized the importance of defending its rights.

Legal Details

The lawsuit, filed in the U.S. District Court for the District of Delaware, is identified as AstraZeneca LP and AstraZeneca AB v. Xavier Becerra and Chiquita Brooks-Lasure. This case is part of a larger legal battle involving multiple pharmaceutical companies contesting the IRA.

Industry Challenges to IRA

In addition to AstraZeneca’s lawsuit, other pharmaceutical companies and industry groups have filed legal challenges against the IRA. One such case was recently dismissed in the U.S. District Court for the Western District of Texas due to improper venue.

Read More of this Story at medcitynews.com – 2024-03-03 16:32:00