Press Releases | May 8, 2025
WASHINGTON, D.C. —Today, the U.S. Court of Appeals for the Third Circuit rejected AstraZeneca’s challenge to the Medicare Drug Price Negotiation Program. The unanimous ruling marks the first appellate decision to evaluate and uphold the legality of the program’s core framework, dealing a major blow to pharmaceutical industry efforts to block lower drug prices.
Patients For Affordable Drugs, which filed an amicus brief in the case in defense of the government’s argument, issued the following statement in reaction to this morning’s decision:
“Today’s ruling is a major victory for patients,” said Executive Director Merith Basey. “The court made clear what we’ve known all along: Drug companies have no constitutional right to charge sky-high drug prices without any accountability. This decision affirms that Medicare can and should be negotiating lower drug prices on behalf of seniors and people with disabilities. This should also serve as a warning to other drug companies trying to protect their outrageous profits through the court: your arguments don’t hold up. The American people are firmly behind this program and the savings it promises to deliver.”
The Third Circuit panel, which was made up of a George W. Bush appointee, a Trump appointee, and a Biden appointee, rejected AstraZeneca’s claims under both the Administrative Procedure Act and the Due Process Clause. The court concluded AstraZeneca failed to demonstrate any concrete injury from the program’s guidance and firmly rejected the idea that the company had a protected right to sell drugs at prices higher than what Medicare is willing to pay: “There is no protected property interest in selling goods to Medicare beneficiaries…at a price higher than what the government is willing to pay,” wrote Judge Arianna J. Freeman for the panel.
AstraZeneca’s appeal was one of many industry-backed lawsuits attempting to undermine the historic Medicare drug negotiation provisions of the Inflation Reduction Act. We are still awaiting decisions from the Third Circuit in cases brought by Novartis, Novo Nordisk, Bristol Myers, and Janssen Pharmaceuticals. A decision is also pending from the 2nd Circuit in an appeal brought by Boehringer Ingelheim, as well as federal district court in DC in the case brought by Merck.
To date, P4AD has submitted four amicus briefs on behalf of patients – one in the consolidated cases brought by Bristol Myers Squibb, AstraZeneca, and Janssen Pharmaceuticals and one in the case brought by Novo Nordisk. They also signed onto seven amicus briefs led by Public Citizen and with allies such as Protect Our Care, Doctors for America, and Families USA. By leveraging the expertise of our partners and amplifying patient stories, P4AD is challenging Big Pharma’s attempts to undermine Medicare negotiation through the U.S. legal system. Visit FightPharma.org to learn more about the lawsuits and the work P4AD is doing to fight back.
###
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