Drug makers perk up on block of price disclosures in TV ads

Judge blocks Trump administration's move to require drug prices in TV ads

Judge blocks Trump administration's move to require drug prices in TV ads

Judge Amit P. Mehta of the United States District Court for the District of Columbia said that Congress did not give the U.S. Department of Health and Human Services (HHS) through the Social Security Act (SSA) the authority to compel drug price disclosure as a means to "introduce [] price transparency that will help improve the efficiency of the Medicare and Medicaid programs". The rule had been slated to take effect today, July 9. "But no matter how vexing the problem of spiraling drug costs may be, HHS can not do more than what Congress has authorized". While these companies' pricing decisions do impact Medicare and Medicaid, a reading of the statutory text, says the decision, does not plainly support the idea that Congress meant to give HHS the authority to regulate prescription drug marketing. The statement added the ruling sides with big pharma and the leaves "patients and families as the real victims".

What's next: HHS said that it was disappointed in the court's decision and would work with the Department of Justice on next steps.

Biotechs and biopharma players are modestly in the green after a D.C. district court stopped a Trump administration initiative requiring drug makers to disclose list prices in television advertisements. "Nor does it take any view on the wisdom of requiring drug companies to disclose prices.That policy very well could be an effective tool in halting the rising cost of prescription drugs".

Former Celgene CEO Bob Hugin on President Trump's efforts to rein in drug prices and reform the US health-care system.

A federal judge has nixed a regulation that was a centerpiece of President Donald Trump's efforts to bring down drug prices, a key priority heading into the 2020 campaign. It mandates that drug makers include the price for any medication that costs more than $35 for a month's supply or the usual course of treatment. The largest industry lobbying group, Pharmaceutical Research and Manufacturers of America (PhRMA), said that the list prices could be confusing for patients and discourage them from seeking medical care. The suit also claimed the order violated their First Amendment rights to freedom of speech, but Mehta's ruling didn't address that argument.

The lawsuit was originally filed by pharma giants Merck & Co., Eli Lilly & Co. and Thousand Oaks-based Amgen Inc., as well as the Association of National Advertisers.

Mehta wrote that, ultimately, such a decision rests with the legislative branch - not with the Department of Health and Human Services.