Press Releases | October 30, 2024
WASHINGTON D.C. — Oral arguments were heard today by the United States Court of Appeals for the Third Circuit in the consolidated cases brought by Bristol Myers-Squibb (BMS), AstraZeneca, and Janssen Pharmaceuticals challenging Medicare’s authority to negotiate lower drug prices for the American people. During the proceedings, the panel of judges – made up of Bush, Trump, and Biden appointees – pushed back on key arguments made by the pharmaceutical companies, including their claims that they were being coerced to participate in the Medicare negotiation program or that signing contracts agreeing to “maximum fair prices” violates their First Amendment rights.
The case heard today is part of a coordinated effort by several big drug companies to overturn Medicare’s negotiating power established under the Inflation Reduction Act. The drug manufacturers present today are fighting to protect windfall profits from a few of their blockbuster drugs which were selected for the first round of negotiation; Eliquis from BMS, Farxiga from AstraZeneca, and Xarelto, Stelara, and Imbruvica manufactured by Janssen. The pharmaceutical giants are using constitutional arguments about the program’s legality which have already been heard, and repeatedly rejected, by lower courts. This hearing marks the first time these challenges have come before this particular appeals court, with legal experts suggesting one of the cases brought by the industry could ultimately reach the Supreme Court.
Merith Basey, Executive Director of Patients For Affordable Drugs, issued the following statement:
“Have no doubt, today’s arguments represent the relentless coordinated effort by major pharmaceutical corporations to undermine Medicare negotiation in a blatant attempt to protect their extreme profits at the expense of millions of Americans who struggle everyday to afford the medications they need. The drugs at the center of today’s case have already generated billions of dollars in revenue for these companies while remaining unaffordable for many of the patients whose lives rely on them.
“The arguments presented in court today echo claims that have failed in eight previous court decisions. As with previously heard cases, the judges in today’s case expressed skepticism that the companies were being coerced to participate in the program.
“Medicare negotiation is a critical step toward making prescription drugs more affordable for all Americans and Patients For Affordable Drugs remains steadfast in our commitment to defending this vital program.”
Patients For Affordable Drugs submitted an amicus brief in today’s case that underscores how Medicare price negotiation will deliver transformative savings to patients including:
Background:
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Patients For Affordable Drugs is the only national patient advocacy organization focused exclusively on policies that lower prescription drug prices. We empower and mobilize patients by amplifying their experiences with high drug prices to hold those in power to account and fight to shape and achieve system-changing policies that make prescription drugs affordable for all people in the United States. P4AD does not accept funding from organizations that profit from the development and distribution of drugs. To learn more, visit PatientsForAffordableDrugs.org.