STAT+: Federal judge rules against two drugmakers challenging Medicare drug price negotiation program

WASHINGTON — A federal judge in New Jersey on Monday dealt a blow to two drugmakers challenging the Biden administration’s new Medicare drug price negotiation authority, ruling that the program is constitutional.

The challenge, brought by Bristol Myers Squibb and Johnson and Johnson, argued that the drug price program created in the Inflation Reduction Act was an unconstitutional confiscation of their drugs by the government, a violation of their right to freedom of speech, and is an unconstitutional condition to participate in the Medicaid and Medicare programs.

The loss is a setback for the pharmaceutical industry’s strategy of getting split decisions in lower courts across the country to eventually get the attention of the Supreme Court.

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