Novartis has become the latest drugmaker to sue the US government over the Medicare drug price negotiation element of President Biden’s Inflation Reduction Act (IRA).
The lawsuit, filed in federal court in New Jersey, comes just days after the Centers for Medicare and Medicaid Services (CMS) announced the first ten prescription drugs that will be subject to pricing negotiations by the health programme.
"Under the IRA, which discourages the research and development of additional indications for small molecule medicines by implementing price controls nine years after the first FDA approval, we may not have been able to invest in researching and developing Entresto in these additional indications, depriving patients of a meaningful treatment advance,” Novartis said.
The company added that the negotiations were “unconstitutional" because they amounted to a taking of private property and imposed punitive fines on non-compliant manufacturers.
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