The U.S. Supreme Court on Monday declined to hear a pharmaceutical industry challenge to the Medicare drug price negotiation program created under the Inflation Reduction Act, leaving in place lower court rulings that upheld the Biden-era policy. Drugmakers including Novo Nordisk ($NVO), AstraZeneca ($AZN), Johnson & Johnson ($JNJ) and Bristol Myers Squibb ($BMY) argued the law forces manufacturers into government-controlled pricing negotiations for Medicare drugs.
- The Supreme Court left intact appellate rulings rejecting constitutional challenges brought by major drugmakers.
- The Medicare negotiation program allows CMS to negotiate prices for high-cost prescription drugs covered under Medicare.
- The first negotiated Medicare drug prices took effect this year.
- Lobbying disclosures show major pharmaceutical firms have spent tens of millions of dollars in recent years on issues tied to Medicare pricing, prescription drug affordability, Inflation Reduction Act implementation, PBM regulation and pharmaceutical reimbursement policy.
- Novo Nordisk lobbying filings specifically referenced Medicare coverage of anti-obesity drugs and Inflation Reduction Act implementation.
- The Trump administration continued defending the Medicare pricing framework in court.
Relevant Companies
- Novo Nordisk ($NVO) – Medicare pricing negotiations directly affect several of the company’s diabetes and obesity treatments.
- Bristol Myers Squibb ($BMY) – The company challenged the program over pricing and reimbursement concerns tied to Medicare drugs.
- Johnson & Johnson ($JNJ) – J&J participated in litigation opposing the federal drug negotiation framework.
Editor’s Note: This is a developing story. This article may be updated as more details become available.
