NEW YORK, June 6 (Reuters) - Merck & Co (MRK.N) sued the U.S. government on Tuesday, seeking to halt the Medicare drug price negotiation program contained in the Inflation Reduction Act (IRA), which it argues is violates the Fifth and First Amendments to the U.S. Constitution.
The Biden administration's drug pricing reform aims to save $25 billion annually by 2031 through price negotiations for Medicare.
Merck called the talks with CMS coercive and forces drugmakers to participate in "political Kabuki theater" by pretending negotiations are voluntary.
The first ever Medicare drug price reduction process is due to begin in September when CMS identifies its 10 most costly drugs.
Merck's top selling drug, cancer immunotherapy Keytruda, could be subject to negotiations as soon as 2028.
Persons:
drugmakers, Merck, Ameet, Robin Feldman, Wells, Mohit Bansal, Xavier Becerra, Chiquita Brooks, Michael Erman, Patrick Wingrove, Edwina Gibbs, Nick Zieminski
Organizations:
YORK, Merck & Co, U.S, U.S . Constitution, Biden, Medicare, District of Columbia, Merck, Reuters, CMS, Harvard Medical School, UC College of the, Supreme, U.S . Department of Health & Human Services, Centers, Medicaid Services, LaSure, HHS, Thomson
Locations:
U.S ., U.S, San Francisco