Merck & Co. is suing the US over a law that will allow the government to negotiate prescription-drug prices with pharmaceutical companies — a reform aimed at cutting costs for elderly and disabled Medicare patients that the health-care giant says is "tantamount to extortion."

In a lawsuit filed Tuesday, Merck argues the negotiation process outlined in President Joe Biden's Inflation Reduction Act violates the Constitution. The process is a "sham" that allows the government to unilaterally impose its preferred price, according to the suit, and the company is calling for a court stay against any negotiations involving Merck.

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