BIO filed an amicus brief July 19 in the case of Bristol Meyers Squibb and Janssen, who are appealing a decision by the U.S. District Court for the District of New Jersey. The companies argue that the Inflation Reduction Act (IRA) drug price control program is not a negotiation at all, as it coerces drug makers to agree to sell their products at below-market prices. This amounts to an unconstitutional “Taking” of the companies’ property, in violation of the Fifth Amendment. The IRA program also forces them to endorse government messaging on what is, and is not, a “fair price,” in violation of the First Amendment.
BIO’s amicus brief supports these assertions while focusing on two specific arguments: countering the government’s position that participation in the price “negotiation” program is voluntary and sounding the alarm regarding the IRA’s impact on innovation.