Merck sues US government over negotiations on drug pricing

The pharmaceutical company Merck has sued the US government over negotiated pricing of drugs for the Medicare programme for the elderly. Merck called the negotiated pricing plan “tantamount to extortion” and said it would take its case to the Supreme Court if necessary.1 Other drug makers may take similar action.The negotiations are required by a law passed last year.Merck said that its rights under the first and fifth amendments to the constitution were violated, including its right to free speech and protection against the government taking private property by forcing it to agree to government set prices.2The Pharmaceutical Research and Manufacturers of America, the trade body representing drug companies in the US, said that negotiated pricing would discourage companies from researching and developing cancer drugs.3The Inflation Reduction Act, passed in August 2022, allowed the US government to negotiate prices of some drugs for people aged over 65 who receive care…
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