IRA lawsuits will be vital test of US’ ability to regulate pharma market

Lawsuits brought by a range of pharmaceutical companies including AstraZeneca and J&J against the US Department of Health and Human Services (HHS) over the Inflation Reduction Act (IRA) are heating up as the deadline to propose prices draws near.

The IRA was signed into law in August 2022 and allows the Centers for Medicare & Medicaid Services (CMS) – a federal agency within HHS – to negotiate prices for some of the most expensive drugs bought by the US national health insurance providers. The first ten drugs affected by the legislation were announced in August...