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Judge Rules in Favor of Government in Two Cases Challenging Drug Price Negotiations Under the Inflation Reduction Act

Washington, D.C. – Today the U.S. District Court in New Jersey ruled in favor of the U.S. government in cases brought by Janssen Pharmaceuticals and Bristol Myers Squibb, rejecting the companies’ challenges to drug price negotiations under the Inflation Reduction Act (IRA). In ruling for the government, the Court rejected the plaintiffs’ constitutional challenges and held that the IRA program does not effect a taking, does not compel speech, and does not impose an “unconstitutional condition” on the companies.

In response, Robert Weissman, president of Public Citizen, released the following statement.

“It’s time for Big Pharma to get the message: There’s no constitutional right to price gouge consumers.

“The modest steps in the Inflation Reduction Act to curtail Big Pharma’s rip-offs are just the beginning. Big Pharma needs to get used to it. The days of a bought-and-sold Congress delivering whatever Big Pharma wanted have come to an end.”