Federal judge tosses PhRMA lawsuit challenging Medicare drug negotiations

A federal judge in Texas on Monday dismissed a lawsuit filed by the pharmaceutical industry lobby group PhRMA challenging the Biden administration’s Medicare drug price negotiations.

The ruling marks a modest victory for the Biden administration, marking the first time a court has completely rejected a challenge to Medicare’s new price-negotiating powers.

Eight other lawsuits have been filed by drug companies and other plaintiffs, and the legal battle could last for years. The federal government issued initial proposals to drugmakers earlier this month, and negotiations will conclude in August, but prices will not take effect until 2026.

Judge David Alan Ezra of the Western District of Texas ruled that the plaintiffs lack standing and granted the Biden administration’s request to dismiss the case.

PhRMA was joined in the lawsuit by the National Association of Infusion Centers (NICA) and the World Colon Cancer Association, but Ezra dismissed NICA from the lawsuit, saying the court lacked jurisdiction.

Because NCIA was the only plaintiff residing in Texas, the entire case was dismissed. However, it was dismissed without prejudice and could be raised again.

“We are disappointed in the court’s decision to ignore the merits of our case and are considering our next legal actions,” PhRMA spokeswoman Nicole Longo said in a statement to The Hill.

PhRMA represents some of the world’s largest pharmaceutical companies. The group sued the administration in June, arguing that the Medicare negotiations were unconstitutional and violated drug companies’ due process rules.