TL/DR –
A US federal court in Delaware has ruled against AstraZeneca’s challenge to the Medicare drug price negotiation provisions of the Inflation Reduction Act. AstraZeneca claimed that the law violated its right to due process, but the judge ruled that the company had no entitlement to sell its drugs to the government at any price other than what the government is willing to pay. AstraZeneca, which focused on the logistics of the Act’s implementation rather than its constitutionality, has expressed disappointment and is “actively evaluating” next steps, including potential appeals.
Delaware Court Rules Against AstraZeneca’s Medicare Drug Price Challenge
AstraZeneca office building – Sundry Photography
AstraZeneca’s case contesting the Medicare drug price negotiation aspects of the Inflation Reduction Act was struck down Friday by a federal court in Delaware, reports indicate.
U.S. District Judge Colm Connolly held that AstraZeneca had no valid claim to sell its pharmaceuticals to the Government at any price it wasn’t willing to pay, according to Endpoints News.
The UK-based pharmaceutical giant expressed disappointment over the court’s ruling and its potential implications on patients’ access to future life-saving drugs. AstraZeneca focused its suit on the logistics of the law’s implementation rather than its legality, unlike other big pharma companies.
AstraZeneca is now “actively assessing” further measures. Experts have foreseen an appeals wave by big pharma, with potential consolidation of at least five cases in the Third Circuit U.S. Court of Appeals.
The Delaware ruling was delivered a day before AstraZeneca must respond to the initial pricing offer from the Centers for Medicare and Medicaid Services (CMS) for its drug, Farxiga. The drug is among 10 chosen by CMS for initial round of price talks, with negotiated prices commencing in 2026.
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