J&J, Bristol Myers lose challenges to US drug price negotiation program

Source: Reuters

J&J, Bristol Myers lose challenges to US drug price negotiation program

By Brendan Pierson
April 29, 2024 5:58 PM EDT Updated 5 hours ago

April 29 (Reuters) - A U.S. judge on Monday rejected a challenge by Bristol Myers Squibb (BMY.N), opens new tab and Johnson & Johnson (JNJ.N), opens new tab to a law requiring them to negotiate the prices of their blockbuster blood clot prevention drugs with the U.S government's Medicare health insurance program or pay heavy penalties.

U.S. District Judge Zahid Quraishi in Trenton, New Jersey, became the fourth federal judge, opens new tab to uphold the program, one of Democratic President Joe Biden's signature initiatives, against drug industry challenges, rejecting their argument that it was an illegal taking of their property.

"In short, defendants are not taking drugs from plaintiffs," Quraishi wrote, adding that they were free to stop participating in Medicare if they did not want to negotiate.

The drugmakers did not immediately respond to requests for comment, though Bristol Myers has already filed a notice in court that it was appealing the ruling. Drugmakers have argued that it is not feasible to withdraw from Medicare because it represents nearly half the U.S. prescription drug market.

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Read more: https://www.reuters.com/legal/jj-bristol-myers-lose-challenges-us-drug-price-negotiation-program-2024-04-29/

Alternate link: https://news.yahoo.com/finance/news/j-j-bristol-myers-lose-215236751.html