Federal judge throws out PhRMA's lawsuit against new Medicare drug price negotiation program

In a major development in the ongoing debate over drug prices and health care policy in the United States, a federal district judge has granted the Biden administration’s request to dismiss a lawsuit by the pharmaceutical industry lobby, Pharmaceutical Research and Manufacturers of America (PhRMA). The lawsuit challenged medicare‘s new drug price negotiation program, which aims to lower drug prices and increase access to affordable drugs for Medicare beneficiaries.

The ruling supports the efforts of the Biden administration

The decision to dismiss the lawsuit is a significant positive sign for the Biden administration. It could have implications for a potentially lengthy legal battle, as major drugmakers have also filed lawsuits challenging the constitutionality of the new Medicare powers. The first round of drug negotiations is underway and a judge heard oral arguments in a challenge filed by AstraZeneca last month.

Report on dismissal

The dismissal of PhRMA’s lawsuit over the Medicare drug price negotiation program has been widely reported. The news was initially reported by Nate Raymond in Boston and Doina Chiacu in Washington. The report highlights the reach of Thomson Reuters and its role as a news and media division, reaching billions of people around the world every day.

An important victory for the Biden administration

The Biden administration has won a major victory by persuading a federal judge to dismiss a lawsuit by the top group representing the brand-name prescription drug industry. The court ruled that it lacks jurisdiction over the bargaining program’s legal challenge, and the claims fall within the Medicare Act. Despite the demands, the Biden administration remains committed to moving forward with the implementation of the negotiations program.

Ongoing legal battle and future implications

While the judge’s ruling dismissed the lawsuit filed by PhRMA and two other organizations, it does not signal the end of the legal battle over the policy. The case could reach the Supreme Court. Medicare issued its initial drug price offers to manufacturers for the first 10 drugs subject to the talks earlier this month, and the final negotiated prices will take effect in 2026.

Reactions and future steps

The National Infusion Center Association and the Global Colon Cancer Association also joined the lawsuit. However, the court had no jurisdiction to hear the case. The decision could be brought up again since it was dismissed without prejudice. A PhRMA spokesperson expressed disappointment with the court’s decision and said they are considering their next legal steps.