Merck files lawsuit against government over Medicare drug price negotiations.

Merck has sued the US government over the Medicare drug price negotiation program, which it claims violates the Fifth and First Amendments to the Constitution. 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 Biden administration’s drug pricing reform aims to save $25 billion annually by 2031 through price negotiations for drugs paid for by Medicare. Merck's lawsuit argues that under the law, drugmakers would be forced to negotiate prices for drugs at below market rates, which violates the part of the Fifth Amendment that requires the government to pay just compensation for private property taken for public use.