Bristol Myers Squibb, maker of the blood thinner Eliquis, sued the U.S. government over a provision in the Inflation Reduction Act that would let Medicare negotiate drug prices, becoming the second major drugmaker to do so in less than two weeks.
A court filing Friday from Bristol Myers Squibb derides the new law as a “government-controlled scheme” and argues that the provision violates the Fifth Amendment of the Constitution, which protects against the government taking private property for public use without adequate compensation.
After the lawsuit was filed, Bristol Myers Squibb referred The Washington Post to a statement that characterized the new law as unconstitutional and “bad for innovation.” Defendants named in the lawsuit include the Department of Health and Human Services, Secretary of Health Xavier Becerra and the Centers for Medicare & Medicaid Services. The White House did not immediately respond to a request for comment, but in the past it has defended the new law on drug price negotiations.
“There is nothing in the Constitution that prevents Medicare from negotiating lower drug prices,” White House press secretary Karine Jean-Pierre said this month.Pharmaceutical companies argue that a reduction in drug prices would lead to less investment in the development of new therapies, a line of defense that has been echoed by drugmakers for much of the past decade.
Bristol Myers Squibb last year posted $6.3 billion in net earnings on revenue of $46.2 billion, according to financial filings. That includes $7.8 billion in U.S. revenue from Eliquis, up 21 percent from 2021.
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