Merck sues US government over Medicare drug price negotiation law.

Merck has filed a lawsuit against the US government, seeking an injunction of the drug price negotiation program contained in the Inflation Reduction Act, which it argues violates the Fifth and First Amendments to the US Constitution. The law would force drugmakers to negotiate prices for drugs in the government’s Medicare health insurance program at below market rates. The pharmaceutical industry says the law will result in a loss of profits that will force them to pull back on developing groundbreaking new treatments. The first ever Medicare drug price reduction process is due to begin in September when CMS identifies its 10 most costly drugs.