Merck sues US government over Medicare drug price negotiations

Merck, one of the world’s largest pharmaceutical companies, has filed lawsuits against both the Biden administration and the US government over the Medicare drug price negotiation program.

Merck claims that the program, which aims to lower drug prices for Medicare recipients, is “tantamount to extortion” and will harm the company’s ability to develop new drugs. The lawsuits seek to halt the negotiations and prevent the government from implementing the program.

In one of the lawsuits, Merck accuses the Biden administration of illegally using “arbitrary and capricious” methods to determine drug prices, and of violating the company’s constitutional rights.

Merck’s action has drawn criticism from consumer advocacy groups, who say that the company’s lawsuits are simply an attempt to protect its profits at the expense of seniors who rely on Medicare.

Merck is not the only drug company to sue the government over the drug price negotiation program. Other companies have also filed lawsuits, arguing that the program will have a negative impact on innovation and development.

The lawsuits are expected to be closely watched in Washington, as the Medicare drug price negotiation program is a key part of President Biden’s health care agenda. The program has faced strong opposition from the pharmaceutical industry and its lobbyists, who argue that it will harm innovation and lead to fewer new drugs being developed.