The debate before a federal judge on Thursday centered around the penalties drug manufacturers could face if they decide to withdraw from a government price-setting program.
US District Court Judge Zahid N. Quraishi of New Jersey questioned the attorneys of four major drugmakers and the US Department of Justice about the impacts of the Medicare Drug Price Negotiation Program.
He asked the manufacturers’ attorneys if the program was voluntary and heard oral arguments on lawsuits challenging the program created under the 2022 Inflation Reduction Act.
The program permits negotiated prices for selected drugs under Medicare, with an excise tax as a penalty for nonparticipation or non-compliance with Medicare’s price limits.
Quraishi sought clarification on the excise tax and expressed skepticism regarding the claims that the program violates the First Amendment, the takings clause, and other constitutional grounds.
Attorneys for the drugmakers argued various claims while highlighting concerns about penalties under the Inflation Reduction Act and the implications on their business.
The judge inquired about who benefits from the program and acknowledged the informative arguments presented by both parties after nearly five hours of discussion.
He emphasized that the court usually does not allow lengthy oral arguments but found the discussions helpful in this case.
- Bristol-Myers Squibb Company v. Becerra, D.N.J., No. 3:23-cv-03335
- Janssen Pharmaceuticals, Inc. v. Becerra, D.N.J., No. 3:23-cv-03818
- Novartis Pharmaceuticals Corporation v. Becerra, D.N.J., No. 3:23-cv-14221
- Novo Nordisk Inc. et al v, Becerra, D.N.J., No. 3:23-cv-20814.