Novartis sues over IRA ahead of Entresto price negotiations

No­var­tis is the lat­est drug­mak­er to sue the fed­er­al gov­ern­ment over the In­fla­tion Re­duc­tion Act af­ter learn­ing its block­buster heart drug En­tresto will be up for the first round of Medicare price ne­go­ti­a­tions in 2026.

Un­der the IRA, drug­mak­ers will be re­quired to par­tic­i­pate in Medicare price ne­go­ti­a­tions or else pay a steep fine or risk los­ing Medicare and Med­ic­aid cov­er­age al­to­geth­er. No­var­tis joins a hand­ful of phar­ma com­pa­nies ar­gu­ing the new leg­is­la­tion is un­con­sti­tu­tion­al and could sti­fle in­no­va­tion.

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