While stressing that the new government price negotiation program is strictly voluntary, government lawyers made clear in a New Jersey federal court brief filed last night that both Bristol Myers Squibb and Janssen’s primary legal theory — that the program represents a “physical” taking of their property — is untenable under the same Supreme Court cases that the companies invoke.
The court filing, which again lays out HHS’ defense, comes as almost a dozen pharma companies have now filed suit over the Inflation Reduction Act’s drug price negotiations in various courts across the country. Earlier this month a federal judge sided with HHS in saying the negotiation timeline can proceed, thus blocking an effort by the US Chamber of Commerce to stop the negotiations before they start.
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