U.S. appeals court rejects rule requiring drug prices in TV ads - (Financial Post via NewsPoints Desk)

  • A US appeals court on Tuesday upheld a ruling that struck down a rule by the government that required pharmaceutical companies to include the wholesale prices of their drugs in television advertisements, as reported Financial Post.

  • The US Court of Appeals for the District of Columbia Circuit ruled in favour of Merck & Co., Eli Lilly and Amgen and said the US Department of Health and Human Services (HHS) lacked authority to establish the rule.

  • "Because there is no reasoned statutory basis for its far-flung reach and misaligned obligations, the disclosure rule is invalid and is hereby set aside," noted US Circuit Judge Patricia Millett.

  • In May 2019, HHS secretary Alex Azar announced the rule, saying that forcing drugmakers to disclose their prices in direct-to-consumer TV advertising could help drive down drug costs if the companies were embarrassed by them.

  • A federal judge in July 2019 struck the rule down.

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