Allison Strong
The Radioactive Patient
Teva Pharmaceuticals is the latest of seven drug manufacturers to file suit against the Department of Health and Human Services over the Medicare Part D price negotiations. Teva, anticipating that Austedo and Austedo XR, both of which treat tardive dyskinesia, would be selected for the second round of drug price negotiations, filed suit on January 15th, 2025. Two days later, Centers for Medicare and Medicaid (CMS) posted fifteen drugs subject to price negotiations, including Austedo and Austedo XR.
Among Teva’s allegations is that the program grants CMS excessive authority by allowing the agency to set lower prices without any genuine negotiations. The lower prices disincentivize the development of lower cost generics and biosimilars, ultimately leading to higher prices and reduced patient access.
As the world’s second largest manufacturer of generics, Teva’s position has merit. Moreover, it is unique. Other companies involved in the suits, such as Merck, Bristol Myers Squibb, and Johnson & Johnson, are primarily known for their brand-name products.
Teva’s lawsuit also contends that since Austedo and Austedo XR are made with the same active ingredient, they shouldn’t both be subject to price reductions at the same time.
The Trump administration has not publicly commented on the civil suits against HHS and CMS. Unlike the Biden administration, Trump has been skeptical of government-led drug price negotiations, favoring market-driven approaches to control the costs of prescription drugs. Policy experts predict that the new administration might seek to weaken or limit the scope of the lawsuits. At this time, however, those predictions remain speculative.
Read more about Teva’s legal challenge here: https://healthcarefinancenews.com/news/teva-files-lawsuit-against-drug-price-negotiations