October 21, 2024 Press Releases

ICYMI: Patients Score Eighth Legal Victory As Court Rejects Novartis Challenge to Medicare Negotiation Program

 

Judge Upholds Medicare’s Drug Price Negotiation Program, Dealing Another Blow to Pharmaceutical Industry Lawsuits

 

WASHINGTON D.C. — Marking the eighth win in the ongoing legal battle to preserve the Medicare Negotiation Program, on Friday, October 18th, a district court judge in New Jersey rejected Novartis’ lawsuit against the drug price negotiation program. This ruling adds to the growing list of setbacks for the pharmaceutical industry’s multi-million dollar campaign to undermine the program and keep prices high at the expense of patients.

District Judge Zahid Quraishi denied Novartis’ claim that Medicare Negotiation “forces them to sell their personal property on the government’s terms,” since, as Judge Quraishi also stated in his decisions in Bristol Myers Squibb’s and Janssen’s lawsuits, participation in the program is voluntary. Additionally, Novartis argued that the program’s “excise tax” violated the Eighth Amendment’s Excessive Fines Clause. Judge Quraishi rejected this argument as well, ruling that the challenge was barred by the Anti-Injunction Act. Novartis’ case was the final of four cases that were before Judge Quraishi, and he has now ruled in favor of the government and patients in all four.

David Mitchell, Founder of Patients For Affordable Drugs, issued the following statement:

“Once again, the court has sided with patients and delivered another defeat to Big Pharma. This eighth legal victory underscores the strength and legitimacy of the Medicare Negotiation Program which will begin to lower drug costs for millions of Americans in 2026. Novartis’ attempt to stop Medicare negotiation was yet another industry effort to protect excessive profits at the expense of patients who urgently need affordable medications.

“Behind every one of these legal challenges is a story of a patient rationing their medication or going into debt to afford life-saving drugs. The court’s decision last week moves us one step closer to a future where no one has to make these impossible choices. Patients For Affordable Drugs remains committed to amplifying the voices of those affected by exorbitant drug prices. We will continue to fight alongside patients to defend this crucial program. It’s US vs Big Pharma and our goal remains clear: to ensure that every American can access the medications they need at prices they can afford.”

This ruling represents a victory for patients like Vincent from Chandler, Arizona, who is a retiree living off of Social Security. Vincent was devastated when his doctor prescribed him Entresto, a medication manufactured by Novartis. He learned the drug carried a staggering $725 monthly price tag without insurance. Unable to afford such an exorbitant cost, Vincent has been forced to rely on free samples provided by his physician just to access this life-saving medication.

Vincent’s story is all too common. In 2023 alone, Novartis raked in over $6 billion from the sale of Entresto, while patients like Vincent struggled to pay. However, thanks to the Medicare Negotiation Program, the price of Entresto will be reduced to just $295 per month starting in 2026. This dramatic decrease in cost will provide much-needed relief to the roughly 650,000 patients on Medicare who rely on this critical drug.

Patients For Affordable Drugs has submitted an amicus brief in the Third Circuit appeals brought by Bristol Myers Squibb and Janssen Pharmaceuticals and has signed on to seven amicus briefs led by Public Citizen and supported by Protect Our Care, Doctors for America, and Families USA to support the government’s objection to the lawsuits and amplify the experiences of patients harmed by high drug prices.

Background on Medicare negotiation:

  • The average annual prescription cost for people on Medicare Part D is $4,487.
  • The 10 drugs chosen for negotiation were identified as the top spending drugs covered under Medicare Part D without generic or biosimilar equivalents that have been on the market for at least seven years and also meet other selection criteria.
  • The negotiation process will only apply to 10-15 each year. And even after reforms take effect, Medicare will continue to be the largest purchaser of prescription drugs, maintaining its status as a significant source of revenue for drug companies, and Americans will still pay the highest drug prices globally.
  • Unlike every other sector in health care where Medicare sets prices such as doctor fees, hospital costs, and equipment, pharmaceutical companies have been exempt from any form of negotiation.
  • Medicare negotiation is supported by more than 80 percent of voters.
  • P4AD launched the US v Pharma campaign to mobilize patients and advocates to defend the hard-won victory of Medicare negotiation against Big Pharma’s multi-million dollar legal efforts to halt the program from delivering relief to patients.

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Patients For Affordable Drugs is the only national patient advocacy organization focused exclusively on policies that lower prescription drug prices. We empower and mobilize patients by amplifying their experiences with high drug prices to hold those in power to account and fight to shape and achieve system-changing policies that make prescription drugs affordable for all people in the United States. P4AD does not accept funding from organizations that profit from the development and distribution of drugs. To learn more, visit PatientsForAffordableDrugs.org.

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Patients For Affordable Drugs is the only independent national patient organization focused exclusively on achieving policy changes to lower the price of prescription drugs.