JNJ, BMS’s IRA Loss Is First Time Court Rejects Industry’s First Amendment, Takings Claims

  • May 02, 2024

    Janssen Pharmaceutical Cos. and Bristol Myers Squibb Co. failed to convince a district court judge that the Inflation Reduction Act’s drug price negotiation program violates the drug industry’s First Amendment rights, the Takings Clause of the Fifth Amendment or the Unconstitutional Conditions Doctrine, per a summary judgement issued in favor of the government 29 April.

    The opinion from Judge Zahid Quaraishi of the United States District Court in the District of New Jersey, adds to the list of industry’s legal arguments that have failed to successfully challenge the law. BMS already has appealed the judgement.

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  • Sarah Karlin-Smith

    Sarah is a senior writer with Pink Sheet and has covered U.S. regulation and reimbursement policy for the biopharma industry since 2004, starting with the establishment of the Medicare Part D program. Since then, she has written extensively about developments in all major sectors of the U.S. insurance market (Medicare, Medicaid and commercial plans). She has covered key legislation affecting biopharma, including the Medicare Prescription Drug, Improvement, and Modernization Act which created Part D, health care reform under President Obama, and the Inflation Reduction Act. She has closely followed the increasing influence of pharmacy benefit managers and their use of formulary negotiations and rebates to control pricing. Cathy also has covered developments in health technology assessments and has monitored industry progress on novel drug contracting that reflects value-based pricing.

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