Merck Suit Poised to Send Biden Drug Price Law to Supreme Court

Merck is facing an uphill battle arguing that it’s being forced into negotiations with the federal government, drug pricing analysts say following the company’s challenge to President Joe Biden’s landmark drug pricing law.

Merck, whose diabetes medication and cancer immunotherapy take up a large chunk of Medicare spending, filed a lawsuit Tuesday arguing the drug price negotiation process outlined in the Inflation Reduction Act is a “sham” that allows the government to unilaterally impose its preferred price.

But Medicare is a voluntary program, and the law provides options for brand-name drugs to avoid government negotiations, including by allowing generic or ...