Drugmakers in Court Fight Tax Penalties in Medicare Price Talks

The penalties drug manufacturers will face if they choose to withdraw from a government price-setting program were the focus of debate before a federal judge Thursday.

Judge Zahid N. Quraishi of the US District Court for the District of New Jersey pressed the attorneys of four major drugmakers and the US Department of Justice on the impacts of the Medicare Drug Price Negotiation Program.

“Is this a voluntary program?” Quraishi asked attorneys of the manufacturers.

The Biden appointee heard oral arguments on the federal scheme that is facing multiple lawsuits seeking to block the program. The plan was created under ...