Merck sues Biden administration over Medicare drug price negotiations.

Merck has sued the US government over Medicare's plans to negotiate lower drug prices on behalf of taxpayers and seniors under the Inflation Reduction Act, claiming that the negotiations are a "sham" that violate the company's constitutional rights. The Inflation Reduction Act grants Medicare the authority to negotiate drug prices, and the Centers for Medicare and Medicaid Services will select the first 10 drugs to negotiate later this year, but price changes won't begin until 2026. Merck's diabetes drug Januvia will be subject to negotiation beginning September 2023 because it's among the 10 most widely reimbursed drugs within Medicare Part D.