Court Rejects AstraZeneca’s Challenge to Inflation Reduction Act
TL/DR –
A US federal court in Delaware ruled against AstraZeneca’s challenge to the Medicare drug price negotiation provisions of the Inflation Reduction Act. The court determined that the pharmaceutical company had no legitimate claim of entitlement to sell its drugs to the Government at a price other than what the Government is willing to pay. AstraZeneca expressed disappointment at the court’s decision and is considering its next steps, with some observers predicting a round of appeals by big pharma.
US Federal Court Rules Against AstraZeneca in Medicare Drug Price Dispute
Image: AstraZeneca office building/iStock, Sundry Photography
On Friday, a Delaware federal court dismissed AstraZeneca‘s challenge to the Medicare drug price negotiation clauses of the Inflation Reduction Act, as reported by multiple sources.
Judge Colm Connolly stated that AstraZeneca had no legitimate entitlement to sell drugs to the government at any price it chooses, according to Endpoints News. The company had sought judgment against this key aspect of the 2022 law, claiming a violation of its due process rights.
AstraZeneca expressed their disappointment in the court’s decision, stating the potential negative effects on patients’ access to future life-saving medicines. The company emphasised that their challenge was necessary to enhance patients’ access to these medicines.
Unlike other large pharmaceutical companies, AstraZeneca’s focus was on the logistics of implementing the Inflation Reduction Act, instead of challenging its constitutionality.
Regarding future actions, AstraZeneca stated they are “actively evaluating” next steps. Several observers have foreshadowed an appeal round from big pharma, including the possible consolidation of multiple cases into the US Court of Appeals for the Third Circuit.
The Delaware judgment was delivered a day before AstraZeneca’s response deadline to the initial pricing offer from CMS for the SGLT2 inhibitor Farxiga (dapagliflozin). This drug is one of 10 selected by CMS for the initial negotiation round, with the negotiated prices taking effect in 2026.
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