Bristol Myers Squibb Co. v. Becerra; Janssen v. Becerra
On September 4, 2025, the Third Circuit upheld the constitutionality of the Inflation Reduction Act’s “Drug Price Negotiation Program.” The decision was a setback for WLF, which filed an amicus brief in the case explaining why the program violated pharmaceutical manufacturers’ constitutional rights. Even so, the panel majority held that the program does not violate the Fifth Amendment’s Takings Clause because pharmaceutical companies’ participation in Medicare is voluntary, allowing them to withdraw from specific programs to avoid price negotiations and excise taxes without constituting a physical appropriation of their drugs. The appeals court further held that the program neither compels speech in violation of the First Amendment nor imposes unconstitutional conditions on the companies’ participation in federal healthcare programs. Judge Hardiman strongly dissented from the majority’s opinion.
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