“To accept theagency's justification here would swing the doors wide open to anyregulation, rule, or policy that might reasonably result in costsavings to the Medicare and Medicaid programs,” the judge wrote.(Photo: Shutterstock)

The Trump administration overstepped its authority with a ruleto force drug companies to include the price of their medicine inadvertisements, a federal judge ruled Monday.

Merck & Co., Eli Lilly & Co., Amgen Inc. and a tradegroup for advertisers sued the government last month to block theregulation, which would have required the companies to include druglist prices in the ads, which are a key part of pharmaceuticalmarketing.

Related: Listing drug prices on TV: Does it really benefitconsumers?

But the law the Department of Health and Human Services saidgave it the authority to do so “simply does not support the notion— at least not in a way that is textually self-evident — thatCongress intended for the Secretary to possess the far-reachingpower to regulate the marketing of prescription drugs,” U.S.District Court Judge Amit P. Mehta said in the ruling.

“We are disappointed in the court's decision and will be workingwith the Department of Justice on next steps,” said Caitlin Oakley,a spokeswoman for the Department of Health and Human Services.

Lilly spokesman Mark Taylor said the company was pleased withthe ruling, adding that Lilly is committed to helping findsolutions for lowering consumers' health-care costs.Representatives for Merck and Amgen didn't respond to requests forcomment. The Nasdaq Biotechnology Index, a barometer of investorsentiment about drug prices, was down about 0.4% at 9:33 a.m. inNew York, in line with the market.

The ruling is a blow to the government effort to force down drugprices and consumer health costs. Led by President Donald Trump andHealth and Human Services Secretary Alex Azar, the administrationhas written a blueprint of potential regulations.

But some of the most ambitious efforts, such as a plan tooverhaul rebates organized by drug plans, and to tie some U.S.prices to what other countries pay, have yet to be finalized. Andwhile there is broad agreement to act on drug prices in Congress,lawmakers have yet to pass any major legislation to do so.

Legal authority

Without new law giving, Mehta said that the administration wasoutside the bounds of its authority.

“To accept the agency's justification here would swing the doorswide open to any regulation, rule, or policy that might reasonablyresult in cost savings to the Medicare and Medicaid programs,”Mehta wrote. The regulation “represents a significant shift inHHS's ability to regulate the health-care marketplace.”

Trump's adviser Kellyanne Conway said the administration maycontinue to pursue the effort in the courts. “The president is nota quitter,” Conway told reporters at the White House Tuesday. “Thepresident is very fond of the rule that would compel drugmanufacturers to list their prices on TV. Again, what are theyhiding? We want transparency.”

Many drugmakers, including Lilly and Amgen, have createdwebsites to disclose prices, but argued that including them in adscould result in patients being scared away from seeking treatment.The Trump administration had said that forcing drugmakers todisclose prices for drugs, which have risen sharply in recentyears, could push down list prices.

The case is Merck v. U.S. Department of Health and HumanServices, 19-cv-1738, U.S. District Court, District of Columbia(Washington).

Read more: 

• Eli Lilly says 'no' to TV list prices but offers acompromise
• What does the FDA think of Instagram influencersand medical promotions?
• TV list prices for drugs could be a turnoff forconsumers, study says

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