"Drug Price Control Fails" US Johnson & Johnson Sues Government Over IRA Opposition

Opposition to IRA Drug Price Reduction Clause
"Infringement on Private Property and Hindrance to Corporate Innovation"

Global pharmaceutical company Johnson & Johnson has filed a lawsuit against the government in response to the Biden administration's push to lower drug prices.

According to major foreign media on the 18th (local time), Johnson & Johnson sued the government in the New Jersey federal court, claiming that the drug price reduction provisions of the Inflation Reduction Act (IRA) violate the U.S. Constitution.

The IRA, enacted last year, grants the government the authority to negotiate drug prices covered by the U.S. public health insurance program 'Medicare' with pharmaceutical companies. Aimed at preventing pharmaceutical companies from excessively raising insured drug prices, the U.S. government plans to select 10 prescription drugs for priority negotiation and apply lower prices starting in 2026.

Johnson & Johnson strongly opposed this provision, arguing that it infringes on constitutionally guaranteed private property rights. They claim that the drug price reductions excessively control corporate rights and undermine the willingness to develop new drugs, ultimately restricting patients' access to new medications.

Johnson & Johnson stated, "(This law) threatens the U.S.'s leading position in developing innovative treatments and ensuring patients can receive such treatments," adding, "We filed the lawsuit to prevent congressional actions that excessively hinder innovation." They also pointed out that since the government unilaterally decides drug prices based on the IRA, no substantial negotiations with pharmaceutical companies take place, which is problematic.

With Johnson & Johnson's lawsuit, the number of pharmaceutical companies filing lawsuits against the U.S. government in opposition to the IRA has increased to three, following Merck and Bristol Myers Squibb.

Meanwhile, according to the U.S. Congressional Budget Office, government spending is estimated to decrease by $101 billion (approximately 128 trillion KRW) over the first six years of the IRA's implementation due to the drug price reduction negotiation provisions. Pharmaceutical companies' sales are expected to decline accordingly.

This content was produced with the assistance of AI translation services.