Amgen has filed a lawsuit accusing a Colorado state board of violating the U.S. Constitution over a plan to pursue a first-in-the-nation move to cap the cost of a pricey prescription medicine.
In its lawsuit, the company argued the mandate for the state prescription drug affordability board is unconstitutional because its actions will conflict with federal law, violate basic requirements of due process, and seek to regulate business outside of Colorado. And Amgen contended the board wants to “impose arbitrary price controls” on the sale of drugs and “strip away” intellectual property rights.
The move comes one month after the state board — which is designed to function like a rate-setting authority — determined that a big-selling Amgen medication called Enbrel is unaffordable and began a process to create a so-called upper payment limit. This would cap the cost of the medicine for residents who are covered by a government agency or a commercial health plan.