Merck, the New Jersey-based pharmaceutical giant, is leading that industry’s pushback against a new federal program that will allow Medicare to negotiate drug prices. The company filed a lawsuit in federal court Tuesday seeking to stop the implementation of the program, which was created as part of the bipartisan Inflation Reduction Act.
In its filing, Merck described the program as “tantamount to extortion” and argues it will require drug companies to sell their products for below market value. The Biden administration has said the program will save the federal government roughly $25 billion by 2031.
