Novo Nordisk calls IRA ‘unprecedented departure’ from US Constitution

No­vo Nordisk re­quest­ed last week that a New Jer­sey fed­er­al court strike down CMS guid­ance around Medicare price ne­go­ti­a­tions, ar­gu­ing that no law has giv­en a gov­ern­ment agency such broad pric­ing au­thor­i­ty “even dur­ing wartime.”

The Dan­ish phar­ma said in a mo­tion for sum­ma­ry judg­ment that CMS’ guid­ance vi­o­lates the In­fla­tion Re­duc­tion Act’s “plain text” by group­ing No­vo Nordisk’s in­sulin as­part prod­ucts to­geth­er. No­vo al­so chal­lenged what it claims are “grave un­der­ly­ing con­sti­tu­tion­al prob­lems” with the leg­is­la­tion, in­clud­ing an al­leged lack of “ad­e­quate pro­ce­dures to pro­tect against un­fair and con­fis­ca­to­ry pric­ing.”

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