The drug price negotiation program has withstood another procedural effort in striking down one of the Inflation Reduction Act’s most significant provisions.
In the U.S. Court of Appeals for the 6th Circuit, a panel of judges upheld (PDF) a lower court’s decision to dismiss the lawsuit.
A judge dismissed the lawsuit last year, saying most of the plaintiffs lacked standing to bring the case, but the U.S. Chamber of Commerce was able to file a new suit. The U.S. Chamber could now appeal to the Supreme Court, reported The Hill.
“This decision marks the 10th court ruling in favor of patients and against the pharmaceutical industry’s desperate legal attacks on the overwhelmingly popular Medicare negotiation program, which in January will deliver lower prices to more than 9 million patients across the nation,” said Merith Basey, executive director for advocacy group Patients for Affordable Drugs, in a statement.
Drugmakers and certain Republicans have long sought to dismantle the Biden-era program, though the Trump administration defended it earlier this year in a lawsuit brought by Novartis.
The Chamber of Commerce had filed the suit originally to halt the pricing program. Plaintiffs in court cases argued the program is unconstitutional and stifles innovation, while the law’s defenders say the program makes lifesaving drugs more affordable.
Under President Joe Biden, the Department of Justice slammed manufacturers and interest groups for their legal challenges.
The program has since proceeded, with two administrations seeking to lower the price of 20 costly drugs.
In January, Teva Pharmaceuticals joined the cascade of lawsuits against the Centers for Medicare & Medicaid Services (CMS). The drugmaker argued CMS guidance contradicts elements of the negotiation program as well as the agency’s definition of drugs eligible to be selected.
Eli Lilly, Johnson & Johnson, Pfizer and Sanofi agreed with Teva’s characterizations in an amicus brief filed months later.