Johnson & Johnson Sues Biden Admin Over Drug Prices

Johnson & Johnson has filed a lawsuit against the Biden administration over Medicare's new powers to reduce drug prices. The Inflation Reduction Act passed in 2022, allows Medicare to negotiate drug prices for the first time, aiming to make drugs more affordable for older Americans but potentially impacting pharmaceutical industry profits. J&J's lawsuit contends that the Medicare negotiations constitute an "uncompensated physical taking" of their drug Xarelto, violating their Fifth Amendment rights against government seizure without just compensation. The company also argues that the provision forces them to make "false and misleading statements" under the First Amendment, as it compels them to agree that the government is negotiating fair drug prices when they believe the government sets prices unilaterally without genuine negotiation—the U.S. Health and Human Services Department has stated that it will vigorously defend the President's drug price negotiation law, emphasizing its role in lowering healthcare costs for seniors and people with disabilities.