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WASHINGTON, D.C. — This morning, the U.S. Court of Appeals For The Third Circuit rejected Bristol Myers Squibb (BMS) and Janssen’s challenge to the Medicare Drug Price Negotiation Program, standing with patients and affirming the earlier district court decision that the program is constitutional.
Following pharma’s three legal defeats in August, this latest decision marks the 13th ruling in favor of Medicare negotiation — a program that is set to deliver lower drug prices to 9 million people on Medicare in 2026 and is supported by over 80% of Americans. The ruling was two to one, with one judge appointed by President Trump and one Biden appointee in the majority, and a Bush appointee dissenting.
The court fully rejected BMS and Janssen’s constitutional arguments, finding that drugmakers are not being coerced and participation in Medicare negotiation is voluntary — referencing August’s decision in the Boehringer Ingelheim challenge. The court confirmed that Medicare negotiation is both a lawful and effective way to deliver lower drug prices for patients and taxpayers, stating that drugmakers do not “have a constitutionally protected right to be reimbursed for their products at price levels they have historically enjoyed.”
In response to the ruling, P4AD Executive Director Merith Basey released the following statement:
“Once again the integrity of Medicare negotiation has been upheld against the industry’s baseless legal arguments. The program is a game-changer, and starts to bring the U.S. in line with every other high-income nation already negotiating a better deal for patients. It’s the U.S. v. Pharma, and P4AD stands firmly with the millions of Americans counting on this historic relief to uphold the hard-fought victory of lower drug prices”
Patients For Affordable Drugs has submitted four amicus briefs on behalf of patients — including one in this case — and signed onto seven briefs led by Public Citizen and supported by Protect Our Care, Doctors for America, and Families USA to support the government’s opposition to the lawsuits and amplify the experiences of patients harmed by high drug prices. |
