Judge rejects J&J, Bristol Myers Squibb challenges to Medicare drug price negotiations

A federal judge in New Jersey has dismissed legal challenges from Johnson & Johnson and Bristol Myers Squibb against the Biden administration’s Medicare drug price negotiations. The judge ruled that the program is constitutional. The ruling is seen as a win for the Biden administration in its battle with drugmakers over the price talks. The decision weakens the pharmaceutical industry’s strategy of seeking split decisions in lower courts, potentially elevating the issue to the Supreme Court. The Medicare drug price negotiations are a key part of President Joe Biden’s Inflation Reduction Act, aiming to make medications more affordable for seniors. The prices will go into effect in 2026.