The case heard today is part of a coordinated effort by several big drug companies to overturn Medicare’s negotiating power established under the Inflation Reduction Act. The drug manufacturers present today are fighting to protect windfall profits from a few of their blockbuster drugs which were selected for the first round of negotiation; Eliquis from BMS, Farxiga from AstraZeneca, and Xarelto, Stelara, and Imbruvica manufactured by Janssen. The pharmaceutical giants are using constitutional arguments about the program’s legality which have already been heard, and repeatedly rejected, by lower courts. This hearing marks the first time these challenges have come before this particular appeals court, with legal experts suggesting one of the cases brought by the industry could ultimately reach the Supreme Court. 

Merith Basey, Executive Director of Patients For Affordable Drugs, issued the following statement:

“Have no doubt, today’s arguments represent the relentless coordinated effort by major pharmaceutical corporations to undermine Medicare negotiation in a blatant attempt to protect their extreme profits at the expense of millions of Americans who struggle everyday to afford the medications they need. The drugs at the center of today’s case have already generated billions of dollars in revenue for these companies while remaining unaffordable for many of the patients whose lives rely on them.

“Medicare negotiation is a critical step toward making prescription drugs more affordable for all Americans and Patients For Affordable Drugs remains steadfast in our commitment to defending this vital program.”

Patients For Affordable Drugs submitted an amicus brief in today’s case that underscores how Medicare price negotiation will deliver transformative savings to patients including:

• Lynn Scarfuto, a retired nurse navigator from New York who once helped cancer patients access life-saving treatments, only to face a staggering $17,000 monthly cost for Imbruvica after her own cancer diagnosis. Lynn has been forced to rely on financial assistance to cover this enormous expense and lives in constant fear of losing that support. Thanks to Medicare negotiation, the price of Imbruvica will be reduced by 38 percent in 2026.
  • Xarelto, Stelara, and Imbruvica brought in $18.52 billion for Janssen Pharmaceuticals in 2023
• Aly Elbaga, an 84-year-old retiree from New Jersey spends nearly half of his monthly income on prescription drugs, including for Eliquis. Instead of enjoying his well-earned retirement, Aly struggles to afford new clothing, shoes, or other necessities. The Medicare Negotiation Program will reduce the price of Eliquis by 56 percent beginning in 2026.
  • Eliquis brought in $12.2 billion in global sales for Bristol Myers Squibb in 2023.

Background:

• Despite the $372 million lobbying campaign by the pharmaceutical industry and its allies to stop the Inflation Reduction Act, the reforms are already reining in prescription drug costs for millions of patients.
• Unlike every other sector in health care where Medicare has a process to arrive at the prices it is willing to pay – such as doctor fees, hospital costs, and equipment – pharmaceutical companies have enjoyed a unique exemption from any form of direct negotiation with Medicare.
• To date, federal judges have rejected eight lawsuits filed by the pharmaceutical industry and its allies to block implementation of Medicare negotiation.
• 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.