First Amendment Archives - Medical Design Sourcing

In a strong move against the federal government, Merck & Co., based in Kenilworth, New Jersey, has launched a lawsuit against the Inflation Reduction Act (IRA). The firm has retained the services of prominent law firm Jones Day, at times known for its assertive litigation style. In recent years, the firm has also been involved in contentious cases, for instance, representing Volkswagen in its emissions scandal and Donald Trump during his presidential campaigns. In Merck’s opening salvo against the government’s prescription drug pricing program under the Inflation Reduction Act (IRA), the company has fired off a strongly-worded complaint. The suit was filed on June 6 in the U.S. District Court for the District of Columbia against senior federal healthcare officials and agencies including the Secretary of Health and Human Services Xavier Becerra, and the Centers for Medicare & Medicaid Services.

This legal challenge is the latest chapter in Merck’s…

[Photocreo Bednarek/Adobe Stock]

Marking the first legal challenge of its kind, pharma giant Merck & Co. took to the courts on Tuesday, directly contesting the U.S. government over the Medicare drug price negotiation program. The Big Pharma company’s lawsuit, filed in the U.S. District Court for the District of Columbia, contends the program’s basis — the Inflation Reduction Act (IRA) — infringes upon the Fifth and First Amendments of the U.S. Constitution.

The legislation has put pricing pressure on the industry and contributed to a wave of recent M&A deals.

Merck, and the wider pharmaceutical industry, are raising the alarm. They claim the law, in effect, coerces drugmakers into accepting below-market rates. The lobbying group PhRMA (Merck is a member) released a statement in April 2023 arguing that the Inflation Reduction Act threatens patient access and complicates R&D efforts.…

First Amendment

Exploring Merck’s key arguments in its constitutional challenge against the Inflation Reduction Act

A timeline of Merck’s legal battle over Medicare negotiation