Drugmakers comply with Medicare pricing talks despite lawsuits
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Major drugmakers targeted in a first-of-its-kind program to impose negotiated prices on Medicare Part D drugs have signed into the process despite ongoing lawsuits, Reuters reported Monday.
The manufacturers had until October 1 to agree with the U.S. Centers for Medicare and Medicaid Services (CMS) to participate in the process by submitting related data and information.
Drugmakers that don't take part face two choices: pay an excise tax of up to 95% of their medication's U.S. sales or withdraw their products from the Medicare and Medicaid programs.
In late August, Medicare announced the first ten drugs selected for the initial pricing negotiations that will lead to revised prices in 2026.
The list included Eliquis, a blood thinner marketed by Bristol Myers (NYSE:BMY) and Pfizer (PFE); Jardiance, a diabetes therapy developed by Eli Lilly (LLY); and Imbruvica, a blood cancer therapy marketed by AbbVie (ABBV) and Johnson & Johnson (JNJ).
AstraZeneca's (AZN) diabetes therapy Farxiga, Novartis' (NVS) cardiovascular drug Entresto, and JNJ's (JNJ) blood thinner Xarelto and arthritis therapy Stelara also made it onto the list.
Merck's (NYSE:MRK) anti-diabetic medication Januvia, Amgen's (AMGN) rheumatoid arthritis therapy Enbrel, and Novo Nordisk's (NVO) (OTCPK:NONOF) insulin product Fiasp rounded out the first ten drugs.
At least seven drugmakers, including Merck (MRK) and Bristol Myers (BMY), have filed lawsuits challenging the program's constitutionality.
Last Friday, a federal judge denied the U.S. Chamber of Commerce's bid to get a preliminary injunction to block its implementation.

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