SUBSCRIBE TO OUR FREE NEWSLETTER
Daily news & progressive opinion—funded by the people, not the corporations—delivered straight to your inbox.
5
#000000
#FFFFFF
5
#000000
#FFFFFF
Activists protest the price of prescription drug costs in front of the U.S. Department of Health and Human Services (HHS) building on October 6, 2022 in Washington, D.C.
(Photo: Anna Moneymaker/Getty Images)
Federal Judge Tosses Big Pharma Lawsuit Against Medicare Drug Price Negotiations
"Big PhRMA is so desperate to stop the Biden administration from lowering drug costs for seniors that they’re clogging the judicial system with spam lawsuits even in courtrooms they have no jurisdiction in."
Feb 13, 2024
A federal judge on Monday dismissed a lawsuit that the pharmaceutical industry's powerful trade group and allied organizations filed in an attempt to kill Medicare's new drug price negotiation program, which threatens manufacturers' virtually unrestrained power to drive up the prices of lifesaving medicines.
Judge David Alan Ezra of the U.S. District Court for the Western District of Texas tossed the lawsuit on procedural grounds, ruling that the National Infusion Center Association (NICA)—which does not manufacture or sell prescription drugs—lacked standing to sue.
Because NICA was the only plaintiff based in Texas, Ezra—a Reagan appointee—dismissed the lawsuit, which was joined by Pharmaceutical Research and Manufacturers of America (PhRMA) and the Global Colon Cancer Association. The coalition argued that the Medicare price negotiation program is unconstitutional, a claim that advocates have dismissed as cover for the industry's attempt to protect its profits.
A spokesperson for PhRMA, which spends tens of millions of dollars a year lobbying Congress, told Axios in a statement that the group is "disappointed" with the judge's decision and is weighing its next legal steps.
Tony Carrk, executive director of Accountable.US, said in response to Ezra's decision that "Big PhRMA is so desperate to stop the Biden administration from lowering drug costs for seniors that they're clogging the judicial system with spam lawsuits even in courtrooms they have no jurisdiction in."
"The big drug industry will say or do anything to strip away Medicare's new negotiation powers so that they can go back to business-as-usual price-gouging seniors on life-saving medicines," Carrk added.
The Lower Drug Prices Now campaign called on the "rest of the Big Pharma corporations suing Medicare" to stop fighting the program and "start negotiating."
The judge's ruling marks the second setback the pharmaceutical industry and its allies have faced in court since unleashing a barrage of lawsuits last year against the Medicare drug price negotiation program, which was launched under the Inflation Reduction Act. In late September, a federal judge allowed Medicare to continue implementing the program amid a legal challenge brought by the U.S. Chamber of Commerce and its affiliates.
Earlier this month, the Biden administration made its opening price offers to the manufacturers of 10 high-priced prescription drugs, including Pfizer, Merck, and Johnson & Johnson—each of which is suing over the Medicare program.
The companies now have less than a month to either accept the administration's offer or put forth a counter.
Xavier Becerra, secretary of the Health and Human Services Department, said Monday that the Texas judge's ruling "offers more reason for optimism that our work driving down the cost of prescription drugs will build."
"We will continue to implement the president's historic prescription drug price law, which is already delivering for the American people," said Becerra.
An Urgent Message From Our Co-Founder
Dear Common Dreams reader, It’s been nearly 30 years since I co-founded Common Dreams with my late wife, Lina Newhouser. We had the radical notion that journalism should serve the public good, not corporate profits. It was clear to us from the outset what it would take to build such a project. No paid advertisements. No corporate sponsors. No millionaire publisher telling us what to think or do. Many people said we wouldn't last a year, but we proved those doubters wrong. Together with a tremendous team of journalists and dedicated staff, we built an independent media outlet free from the constraints of profits and corporate control. Our mission has always been simple: To inform. To inspire. To ignite change for the common good. Building Common Dreams was not easy. Our survival was never guaranteed. When you take on the most powerful forces—Wall Street greed, fossil fuel industry destruction, Big Tech lobbyists, and uber-rich oligarchs who have spent billions upon billions rigging the economy and democracy in their favor—the only bulwark you have is supporters who believe in your work. But here’s the urgent message from me today. It's never been this bad out there. And it's never been this hard to keep us going. At the very moment Common Dreams is most needed, the threats we face are intensifying. We need your support now more than ever. We don't accept corporate advertising and never will. We don't have a paywall because we don't think people should be blocked from critical news based on their ability to pay. Everything we do is funded by the donations of readers like you. When everyone does the little they can afford, we are strong. But if that support retreats or dries up, so do we. Will you donate now to make sure Common Dreams not only survives but thrives? —Craig Brown, Co-founder |
Our work is licensed under Creative Commons (CC BY-NC-ND 3.0). Feel free to republish and share widely.
A federal judge on Monday dismissed a lawsuit that the pharmaceutical industry's powerful trade group and allied organizations filed in an attempt to kill Medicare's new drug price negotiation program, which threatens manufacturers' virtually unrestrained power to drive up the prices of lifesaving medicines.
Judge David Alan Ezra of the U.S. District Court for the Western District of Texas tossed the lawsuit on procedural grounds, ruling that the National Infusion Center Association (NICA)—which does not manufacture or sell prescription drugs—lacked standing to sue.
Because NICA was the only plaintiff based in Texas, Ezra—a Reagan appointee—dismissed the lawsuit, which was joined by Pharmaceutical Research and Manufacturers of America (PhRMA) and the Global Colon Cancer Association. The coalition argued that the Medicare price negotiation program is unconstitutional, a claim that advocates have dismissed as cover for the industry's attempt to protect its profits.
A spokesperson for PhRMA, which spends tens of millions of dollars a year lobbying Congress, told Axios in a statement that the group is "disappointed" with the judge's decision and is weighing its next legal steps.
Tony Carrk, executive director of Accountable.US, said in response to Ezra's decision that "Big PhRMA is so desperate to stop the Biden administration from lowering drug costs for seniors that they're clogging the judicial system with spam lawsuits even in courtrooms they have no jurisdiction in."
"The big drug industry will say or do anything to strip away Medicare's new negotiation powers so that they can go back to business-as-usual price-gouging seniors on life-saving medicines," Carrk added.
The Lower Drug Prices Now campaign called on the "rest of the Big Pharma corporations suing Medicare" to stop fighting the program and "start negotiating."
The judge's ruling marks the second setback the pharmaceutical industry and its allies have faced in court since unleashing a barrage of lawsuits last year against the Medicare drug price negotiation program, which was launched under the Inflation Reduction Act. In late September, a federal judge allowed Medicare to continue implementing the program amid a legal challenge brought by the U.S. Chamber of Commerce and its affiliates.
Earlier this month, the Biden administration made its opening price offers to the manufacturers of 10 high-priced prescription drugs, including Pfizer, Merck, and Johnson & Johnson—each of which is suing over the Medicare program.
The companies now have less than a month to either accept the administration's offer or put forth a counter.
Xavier Becerra, secretary of the Health and Human Services Department, said Monday that the Texas judge's ruling "offers more reason for optimism that our work driving down the cost of prescription drugs will build."
"We will continue to implement the president's historic prescription drug price law, which is already delivering for the American people," said Becerra.
From Your Site Articles
A federal judge on Monday dismissed a lawsuit that the pharmaceutical industry's powerful trade group and allied organizations filed in an attempt to kill Medicare's new drug price negotiation program, which threatens manufacturers' virtually unrestrained power to drive up the prices of lifesaving medicines.
Judge David Alan Ezra of the U.S. District Court for the Western District of Texas tossed the lawsuit on procedural grounds, ruling that the National Infusion Center Association (NICA)—which does not manufacture or sell prescription drugs—lacked standing to sue.
Because NICA was the only plaintiff based in Texas, Ezra—a Reagan appointee—dismissed the lawsuit, which was joined by Pharmaceutical Research and Manufacturers of America (PhRMA) and the Global Colon Cancer Association. The coalition argued that the Medicare price negotiation program is unconstitutional, a claim that advocates have dismissed as cover for the industry's attempt to protect its profits.
A spokesperson for PhRMA, which spends tens of millions of dollars a year lobbying Congress, told Axios in a statement that the group is "disappointed" with the judge's decision and is weighing its next legal steps.
Tony Carrk, executive director of Accountable.US, said in response to Ezra's decision that "Big PhRMA is so desperate to stop the Biden administration from lowering drug costs for seniors that they're clogging the judicial system with spam lawsuits even in courtrooms they have no jurisdiction in."
"The big drug industry will say or do anything to strip away Medicare's new negotiation powers so that they can go back to business-as-usual price-gouging seniors on life-saving medicines," Carrk added.
The Lower Drug Prices Now campaign called on the "rest of the Big Pharma corporations suing Medicare" to stop fighting the program and "start negotiating."
The judge's ruling marks the second setback the pharmaceutical industry and its allies have faced in court since unleashing a barrage of lawsuits last year against the Medicare drug price negotiation program, which was launched under the Inflation Reduction Act. In late September, a federal judge allowed Medicare to continue implementing the program amid a legal challenge brought by the U.S. Chamber of Commerce and its affiliates.
Earlier this month, the Biden administration made its opening price offers to the manufacturers of 10 high-priced prescription drugs, including Pfizer, Merck, and Johnson & Johnson—each of which is suing over the Medicare program.
The companies now have less than a month to either accept the administration's offer or put forth a counter.
Xavier Becerra, secretary of the Health and Human Services Department, said Monday that the Texas judge's ruling "offers more reason for optimism that our work driving down the cost of prescription drugs will build."
"We will continue to implement the president's historic prescription drug price law, which is already delivering for the American people," said Becerra.
From Your Site Articles
We've had enough. The 1% own and operate the corporate media. They are doing everything they can to defend the status quo, squash dissent and protect the wealthy and the powerful. The Common Dreams media model is different. We cover the news that matters to the 99%. Our mission? To inform. To inspire. To ignite change for the common good. How? Nonprofit. Independent. Reader-supported. Free to read. Free to republish. Free to share. With no advertising. No paywalls. No selling of your data. Thousands of small donations fund our newsroom and allow us to continue publishing. Can you chip in? We can't do it without you. Thank you.