AstraZeneca’s Court Challenge to Inflation Reduction Act Unsuccessful

AstraZeneca Loses Court Challenge to <a href="">Inflation Reduction Act</a>

AstraZeneca Loses Court Challenge


AstraZeneca CA_iStock, Sundry Photography

Pictured: AstraZeneca office building/iStock, Sundry Photography

Federal Court Ruling

A federal court in Delaware recently ruled against AstraZeneca’s challenge to the Medicare drug price negotiation provisions of the Inflation Reduction Act. U.S. District Judge Colm Connolly determined that AstraZeneca had no legitimate claim of entitlement to sell its drugs to the Government at any price other than what the Government is willing to pay.

AstraZeneca’s Response

AstraZeneca expressed disappointment with the court’s decision and highlighted the potential negative impact on patients’ access to future life-saving medicines. The company believes its challenge is necessary to support and improve patients’ access to future life-saving medicines.

Legal Strategy

Unlike other big pharma companies, AstraZeneca chose to focus on the logistics of the Inflation Reduction Act’s implementation rather than the law’s constitutionality.

Next Steps

AstraZeneca is actively evaluating its next steps following the court ruling. Observers predict a round of appeals by big pharma, with multiple cases likely to be consolidated into the U.S. Court of Appeals for the Third Circuit.


The Delaware judgment comes just before AstraZeneca must respond to the initial pricing offer from the Centers for Medicare and Medicaid Services (CMS) for the SGLT2 inhibitor Farxiga. Negotiated prices for selected drugs will take effect in 2026.

Contact Information

Neil Versel is the business editor at BioSpace. You can reach him at Follow him on LinkedIn or Twitter.

Read More of this Story at – 2024-03-01 20:03:30

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