A federal judge in New Jersey has rejected the legal challenges made by Johnson & Johnson and Bristol Myers Squibb to the Biden administration’s Medicare drug-price negotiations. This ruling is seen as a win for the White House in its ongoing battle with drugmakers over the price talks. The decision also weakens the pharmaceutical industry’s strategy of seeking split decisions in lower courts, potentially escalating the issue to the Supreme Court.
Medicare drug-price negotiations are a crucial policy under President Joe Biden’s Inflation Reduction Act. The aim is to make expensive medications more affordable for seniors, which could impact drugmakers’ profits. The final negotiated prices for the first round of drugs subject to these talks, including those from J&J and Bristol Myers, will come into effect in 2026.
The drugmakers argued in separate lawsuits that the negotiations are unconstitutional and violate their right to freedom of speech. They also claimed that the talks are an unconstitutional condition to participate in the Medicaid and Medicare programs. However, Judge Zahid Quraishi of the District of New Jersey dismissed these arguments, stating that participation in the price talks and the Medicare and Medicaid markets is voluntary. He emphasized that the negotiations do not require drugmakers to reserve or transport any of their drugs at a new negotiated price.
Other drugmakers, including Novo Nordisk, Novartis, and AstraZeneca, have also faced legal challenges to the Medicare drug-price negotiations in different courts across the country. A federal judge in Delaware rejected AstraZeneca’s lawsuit, while a federal judge in Texas dismissed a separate lawsuit. In Ohio, a federal judge denied a preliminary injunction sought by the Chamber of Commerce to block the price talks.
The rejection of Johnson & Johnson and Bristol Myers Squibb’s challenges is another blow to the pharmaceutical industry’s efforts to fight against Medicare drug-price negotiations. It remains to be seen whether these cases will eventually reach the Supreme Court. In the meantime, the Biden administration’s push for more affordable medications for seniors continues, potentially reshaping the landscape of the pharmaceutical industry.
