Merck, Johnson & Johnson and Amgen are among the first drugmakers to have products chosen for a contentious initiative to rein in prescription-drug costs.
Medicare on Tuesday announced the first 10 drugs to be selected for a price-negotiation program established under last year’s Inflation Reduction Act, launching a historic and highly contentious process with big implications for pharmaceutical companies, taxpayers and patients.
The manufacturers of the selected drugs have until Oct. 1 to sign agreements to participate in the program. Several pharmaceutical companies with affected products, including Merck, Bristol Myers Squibb and AstraZeneca, have already filed lawsuits challenging the negotiation process. At least eight such lawsuits filed by drugmakers and industry groups are now pending in various U.S. district courts, raising the odds that conflicting rulings will ultimately bring the issue to the U.S.
Other affected industry players also fired back on Tuesday. “The IRA’s price control provisions will constrain medical innovation, limit patient access and choice, and negatively impact overall quality of care,” a Johnson & Johnson spokesperson said in a statement to MarketWatch.
The effort to rein in prescription-drug costs is potentially lifesaving, some doctors and patient advocates say. “It’s a huge issue for my patients,” said Dr. Rob Davidson, an emergency-room physician in western Michigan and the executive director of the Committee to Protect Health Care, an organization of healthcare professionals advocating for quality, affordable care.
Some industry groups have argued that the process doesn’t allow for true negotiation. “Giving a single government agency the power to arbitrarily set the price of medicines with little accountability, oversight or input from patients and their doctors will have significant negative consequences long after this administration is gone,” Stephen J. Ubl, the president and CEO of industry trade group Pharmaceutical Research and Manufacturers of America, said in a statement Tuesday.
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