Bristol Myers Squibb follows Merck in suing US over Medicare price negotiation program

(Photo: Rept0n1x via Wikimedia Commons)

Bristol Myers Squibb is the third entity this month to file a lawsuit against the U.S. government, challenging the Inflation Reduction Act’s Medicare drug price negotiation program. The lawsuit calls for a halt to the program, alleging it violates the First and Fifth Amendments of the U.S. Constitution.

“The IRA [Inflation Reduction Act] does this by requiring BMS and other pharmaceutical companies to provide innovative medicines to third parties at prices set by the government, without any requirement that those prices reflect fair market value,” Bristol Myers Squibb said in a statement. “The IRA makes manufacturers of innovative medicines state publicly that the government’s price setting is a true negotiation that resulted in a fair price, even if it was not. The First Amendment protects citizens from just this sort of forced speech.”

Eliquis, a blood thinner that is one of the top-selling drugs produced by Bristol Myers, is expected by analysts to be among the first 10 drugs subject to the price negotiations. Those are slated to begin in September and focus on the prescription drugs on which the U.S. government spends the most. CNBC.com reports that Eliquis generated nearly $12 billion in revenue for Bristol Myers Squibb in 2022 — about one-quarter of the company’s $46 billion in total revenue.