AstraZeneca Takes Legal Action Against U.S. Medicare Drug Pricing

AstraZeneca has become the first international company to file a lawsuit against US Health Secretary Xavier Becerra and CMS Administrator Chiquita Brooks-LaSure over Medicare drug pricing negotiations. AstraZeneca argues that certain provisions of the Inflation Reduction Act, which granted CMS negotiating powers, are unconstitutional and infringe on the company's property rights. The pharmaceutical company claims that the law contradicts the Orphan Drug Act, which incentivizes innovation for rare diseases. AstraZeneca, along with other drug companies, is concerned about the limited time window for negotiations and the lack of judicial review once that window closes. The company also highlights the potential for unreasonably low prices without a set starting point for negotiations.