Judge Denies Servier’s Bid for Medicare Drug Discount Status

A federal judge in the nation’s capital granted summary judgment for the HHS in a lawsuit that challenged an agency determination that Servier Pharmaceuticals LLC didn’t qualify for a special status in a Medicare manufacturer discount program.

Beginning this year, the manufacturer discount program requires pharmaceutical companies to offer covered medications to Medicare prescription drug plan enrollees at reduced prices. But drugmakers that qualify as “specified small manufacturers” under the Inflation Reduction Act of 2022 can phase in the discounted prices over seven years.

The Centers for Medicare & Medicaid Services determined Servier qualified only as a “specified manufacturer,” which ...