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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