An expert on healthcare costs, coverage and access is calling a lawsuit filed against the federal government by a group representing the pharmaceutical industry, a "ransom note" for Americans.
Emily Gee, senior vice president, Inclusive Growth, at the Center for American Progress, issued a statement June 21 criticizing the Pharmaceutical Research and Manufacturers of America (PhRMA) suit against the U.S. Department of Health and Human Services' (HHS). The lawsuit challenges the proposed "Drug Price Negotiation Program" under the Inflation Reduction Act of 2022. Plaintiffs allege in the suit that the program hurts research, lacks transparency and could lead to disruptions, hindering access to medication.
"This lawsuit is an insult to millions of patients in America who have been forced to ration their medications or forgo prescriptions altogether because of Big Pharma's greed," Gee said in the statement.
"For decades, Big Pharma has exploited its monopoly power to rip off hard-working Americans by charging prices in the United States that no other country in the world will agree to pay for the exact same drugs," Gee said.
Plaintiffs, including the National Infusion Center Association (NICA), the Global Colon Cancer Association (GCCA), and the Pharmaceutical Research and Manufacturers of America (PhRMA), argue that the drug price-negotiation program, which aims to set drug prices, is "arbitrary, capricious, and unconstitutional." The plaintiffs contend that the program lacks transparency, imposes excessive fines, violates due process and grants HHS unchecked authority to set prices, thereby inhibiting pharmaceutical innovation and disrupting patient access to necessary treatments. They seek a permanent injunction against the program's enforcement, a declaration of its unconstitutionality, and more.
The lawsuit argues that the cost of research and development for new drugs far exceeds the potential revenue that drug manufacturers would generate if the proposed drug prices under the Inflation Reduction Act of 2022 take effect. It contends that the implementation of price controls would hinder pharmaceutical innovation by making it financially unsustainable for companies to invest in the development of new treatments. The plaintiffs assert that the discrepancy between development costs and potential revenues undermines the economic viability of the industry and jeopardizes patients' access to life-saving medications.
Gee counters that "President Joe Biden’s targeted law to lower drug prices puts an end to the most egregious excesses in the pharmaceutical industry; incentivizes drugmakers to actually invest in innovative therapies; and will lower drug prices for millions of seniors with cancer and diabetes, among other common conditions.
"The courts should reject this and similar lawsuits that appear to be nothing more than a ransom note for millions of Americans who need access to lifesaving medications they otherwise cannot afford," Gee said in the statement.
