Drug industry trade groups sue Trump admin over drug pricing rule - (Financial Post via NewsPoints Desk)

  • Pharmaceutical Research and Manufacturers of America (PhRMA) and a group of biotechnology industry trade organizations, including the Biotechnology Innovation Organization (BIO), filed two lawsuits against the Trump administration on Friday challenging new US rules to lower drug prices, as reported in the Financial Post.

  • Last month, the administration said it finalized a rule, which will take effect on January 1, that would tie payments for some drugs made by Medicare to the lowest price paid by certain other countries.

  • According to the news source, the new reimbursement rules will effect 50 drugs and be tied to the lowest price charged among a list of wealthy countries. The administration estimates the move could save taxpayers and patients $85 billion over seven years.

  • However, PhRMA's lawsuit wants to halt the rule, arguing the change is illegal because it relies on laws allowing the administration to test new drug pricing models, but is too far reaching to qualify as a pilot.

  • "It's not a test when it impacts the entire country and implicates 90% of (Medicare's hospital drug) spending with no control group," remarked Steve Ubl, chief executive at PhRMA.

  • Both lawsuits claim, among other things, that the US administration did not follow the appropriate process by failing to collect feedback from stakeholders before announcing the new rule, the news source added.

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