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Bristol Myers Squibb (NYSE:BMY) has reportedly become the latest drugmaker to sue over a new program that allows the US government to negotiate drug prices for Medicare, arguing that the initiative is unconstitutional.
Echoing a lawsuit filed by Merck (MRK) last week, Bristol has alleged that the drug negotiation program, which was established by the Inflation Reduction Act of 2022, violates the First and Fifth Amendments of the US Constitution, according to a CNBC report.
Bristol filed the complaint in a New Jersey federal court. Like Merck, the suit names the Department of Health and Human Services, the Centers for Medicare and Medicaid Services and their respective administrators as defendants.
The suit also noted that the company’s blood thinner Eliquis will be subjected to price negotiations under the new federal program later this year. The drug accounted for roughly 25% of the $46B in revenue Bristol reported for 2022, generating sales of nearly $12B, CNBC added.
Last Friday, the US Chamber of Commerce filed a similar suit in an Ohio federal court.
More on Medicare drug pricing:
US Chamber of Commerce sues US government over drug pricing program
Merck sues US Government to halt Medicare drug pricing program
AbbVie, Amgen among firms targeted for Medicare inflation penalties