Bristol Myers Squibb sues Biden administration over Medicare drug negotiations in third such lawsuit

">Bristol Myers Squibb sued the Biden administration on Friday Treatmentnew powers to reduce drug prices, the third such trial To be filed against the program in a few days.

Medicare argues in lawsuit filed in federal district court in New Jersey conversation Violation of the First and Fifth Amendments to the US Constitution.

Bristol Myers Squibb has asked the court to declare the program unconstitutional and to block the Department of Health and Human Services from forcing the company to negotiate.

The arguments from Bristol Myers Squibb reflect those filed last week merck, the first company to sue the federal government over drug negotiations. The US Chamber of Commerce has also sued HHS over the program with similar arguments.

The Inflation Reduction Act, passed in a narrow party-line vote in 2022, gave Medicare the right to negotiate drug prices for the first time in the program’s six-decade history. The legislation is a central pillar in the Biden administration’s efforts to control rising drug prices and was a major victory for the Democratic Party.

Bristol Myers Squibb said its blood thinner Eliquis, used to treat clots and stroke, would be subject to negotiations this year. The company generated $11.8 billion in revenue from Eliquis last year, which accounts for about 25% of the company’s $46 billion total 2022 revenue.

The drug maker also said that Opdivo, used to treat several types of cancer, would be subject to future Medicare negotiations. Opdivo projects $8.2 billion in sales for the company in 2022, accounting for about 18% of the drugmaker’s total revenue for that year.

Bristol Myers Squibb argued that the federal government was forcing the company to enter negotiations and eventually agree to a heavily discounted price. The company claims this violates the 5th Amendment’s protection against government seizure of private property without compensation.

The drugmaker also claimed that HHS is forcing the company to publicly present the program as negotiating a fair price. The company called the talks a sham and claimed the federal government was forcing the drugmaker to “parrot its favorite political message” in violation of the First Amendment.

In a statement after Merck’s lawsuit last week, HHS Secretary Xavier Becerra vowed to vigorously defend the Inflation Reduction Act in court, saying, “The law is on our side.”

White House press secretary Karine Jean-Pierre also said in a statement after Merck’s trial that the Biden administration was confident it would win in court.

“There is nothing in the constitution that prevents Medicare from negotiating lower drug prices,” Jean-Pierre said.