Novartis Sues US Government Over Medicare Price Negotiations Under IRA

Novartis has commenced proceedings in the Federal Court of New Jersey against the US Government two days after the Centers for Medicare and Medicaid Services (CMS) unveiled the first 10 drugs that will undergo new pricing negotiations with the US Government.  These pricing negotiations were introduced as part of President Biden’s Inflation Reduction Act 2022 (IRA).  Novartis’ Entresto® (sacubitril/valsartan) is subject to this first round of negotiations.  Novartis argues that the negotiations are ‘an unprecedented and unconstitutional attempt to compel the nation’s drug manufacturers to sell their products at prices dramatically below their market value’.