Pharmaceutical company Merck & Co., Inc. (Merck) filed a lawsuit against the U.S. Department of Health and Human Services (HHS) challenging the Medicare drug price negotiation program established by the Inflation Reduction Act of 2022. Merck argues that the drug pricing program violates the First Amendment and the Takings Clause of the Fifth Amendment, claiming it forces them to accept government-dictated prices and infringes on their property rights. The federal government, represented by HHS Secretary Xavier Becerra and others, contends that Merck's arguments are unfounded and that the negotiation program is essential for reducing drug costs and ensuring the financial stability of Medicare. The case could significantly impact drug pricing, Medicare costs, and federal regulatory authority in healthcare.
The case was filed on June 6, 2023, in the U.S. District Court for the District of Columbia. On October 19, 2023, Merck filed an amended complaint adding its subsidiary Merck Sharp & Dohme LLC as a second plaintiff. The case is ongoing, with both parties having filed motions for summary judgment.
Join us for a litigation update on Merck et al. v. Becerra et al. with Yaakov M. Roth, one of the lead attorneys at Jones Day representing Merck & Co., Inc.