Merck challenges Medicare's drug pricing authority in lawsuit.

Merck has filed a lawsuit against the Biden administration over Medicare's ability to negotiate drug prices under the Inflation Reduction Act, calling the provision a "sham" and asking that it be declared unconstitutional. The company argues that the program violates the First and Fifth Amendments and likened the negotiations to "extortion." Supporters of drug price negotiations argue that the U.S. pays far more for prescription drugs than other developed countries where governments negotiate or regulate drug prices. Pharmaceutical industry stakeholders have argued that negotiation will hamper medical innovation.