Merck sues US government over Medicare drug price negotiation law.
Merck has filed a lawsuit against the US government over a federal law that allows Medicare to negotiate prices directly with drugmakers. The law, which will go into effect in 2026, is intended to lower drug prices, but Merck claims it will stifle its ability and that of its peers to make risky investments in new cures. The company's lawyers claim that the Medicare-negotiation program is unconstitutional and would coerce Merck to provide its products at government-set prices, violating the Fifth Amendment. The program could affect Merck's long-term plans for its blockbuster cancer drug Keytruda.