The Merck Suit

[Jolly]

https://nypost.com/2023/06/11/hope-merck-prevails-in-its-inflation-reduction-act-suit-or-your-business-is-next/

[Mik]

Assuming all this is factual, I hope they win.

[Axtremus]

@Mik said in The Merck Suit:

Assuming all this is factual, ...

It shouldn't be that hard to cite the actual portions of the law that taxes "186% of the drug’s revenues on Day 1 and is hiked daily until it reaches a ruinous 1,900% of revenues" ... not saying the author is wrong, but providing proper references can do a lot to let readers independently verify the claim.

[Jolly]

It's a lawsuit. Go find it.

[Jon]

“Your business is next” is absurd.

Merck was in a position where the government had to buy their product at whatever price Merck dictated.

Now that’s going away for some drugs.

No other business that I know of has such a privilege to be taken away “next”.

[Jon]

I take back my comment. I didn’t read the piece because I was already familiar with the suit since I follow biotech pretty closely these days.

The legislation does essentially prohibit (through punitive taxation) companies from choosing not to sell at the ‘negotiated’ price. And that is in fact different from how other countries who negotiate drug prices (i.e., all of them) operate.

I do imagine they’ll be successful in elimination that provision under the takings clause. That will make the negotiations real negotiations.

[Mik]

As it should be. Not coercion.