Merck & Co. Files First IRA Suit, Signaling Industry Is Ready To Fight

Coming less than three months before the statutory deadline for CMS to publish the initial list of drugs, Merck’s lawsuit calls US Medicare drug price negotiations ‘extortion’ in a complaint that could be the first of more legal pushback to follow.

Vortex blue — MERCK’S SUIT CALLS THE IRA A ‘VORTEX OF FORCED BELOW-MARKET SALES’ WITH ‘NO EVIDENT MEANS OF ESCAPE.’ • Source: Shutterstock

Merck & Co., Inc. has taken the first legal action to fight a new Medicare drug price negotiation program that is being implemented as part of the Inflation Reduction Act (IRA). Changing certain elements of the program or delaying its implementation altogether would be victory for industry.

Key Takeaways

Merck’s lawsuit raises constitutional challenges to President Biden’s signature healthcare achievement.
The suit could result in delays in the implementation...

Litigation has been considered one path industry might take in response to the passage of the landmark drug pricing law last year, but which company might move first and on...

Read the full article – start your free trial today!

Join thousands of industry professionals who rely on Scrip for daily insights

Start your 7-day free trial
Explore trusted news, analysis, and insights
Access comprehensive global coverage
Enjoy instant access – no credit card required

Start Free Trial

Already a subscriber?

Stock Watch: Q1 Sales Trends And Forex Muddle Pharma Outlook

26 May 2025

• By Andy Smith

Pharma firms tended to downplay first-quarter trends in full-year guidance. However, raised guidance seems fragile amid ongoing foreign exchange effects and Medicare Part D redesign pressures.

HHS Intensifies Pressure On Pharma With MFN Pricing Benchmark

20 May 2025

• By Jessica Merrill

The Trump administration released more details on “most favored nation” price targets drug companies are expected to apply to US drug prices.

Lupin CEO On Trump’s Most Favored Nation Policy, Tariffs, Firm’s Five-Year Plan

16 May 2025

• By Vibha Ravi

Lupin CEO Vinita Gupta speaks on Trump’s most favored nation policy, the Inflation Reduction Act’s “pill penalty” and other developments in the US, a major market for the company. The company also outlines a five-year plan focused on complex generics and technology platforms.

Most Favored Nation Policy ‘Lazy, Misguided,’ But US Price Reforms Politically ‘Inevitable’

15 May 2025

• By Cathy Kelly

Policy experts and pharma executives react to President Trump’s executive order on “equalizing” drug prices between the US and comparable nations at the ISPOR 2025 conference.