Washington, D.C.— Today, a federal court in Delaware dismissed AstraZeneca Pharmaceuticals LP v. Becerra et al for lack of standing. In the ruling against one of the pharmaceutical industry’s major claims against the Medicare Drug Price Negotiation Program, the judge disagreed with AstraZeneca’s claim that the program is coercive when it is voluntary.
The decision is the Biden-Harris administration’s most recent win over the big drug companies and their mega lobbying groups that have filed meritless lawsuits against the federal government in an effort to stop Medicare from negotiating lower prescription drug prices — the most popular provision of the Inflation Reduction Act. Medicare drug price negotiation is projected to lower out-of-pocket drug costs for seniors and save taxpayers tens of billions of dollars, but big drug companies are desperately trying to protect their outsized profits at the expense of seniors. In response, Protect Our Care Chair Leslie Dach issued the following statement:
“Today’s decision is a win for patients and underscores drug companies’ greed and desperation to protect their profits by filing meritless lawsuits. While the drug companies are in court, the Biden administration is negotiating lower prices for some of the most expensive drugs on the market that have lacked competition for years. It’s time lifesaving drugs are affordable to people who need them.”
Background
AstraZeneca Raked In More Than $45 Billion In Profits Last Year. AstraZeneca announced it raked in $45.5 billion in 2023 – a $1.46 billion increase over 2022 – during their earnings report in early February. While they make billions, drug companies charge Americans over four times more for prescription drugs than customers in other high-income countries.
AstraZeneca Spent $4.5 Billion On Shareholders In 2023. Rather than make their lifesaving drugs affordable to patients, AstraZeneca rewarded shareholders by paying out $4.5 billion in dividends last year. AstraZeneca’s CEO, Pascal Soriot made over $120 million in total compensation over the past ten years, while the company hiked prices on lifesaving medication.
AstraZeneca Has Earned About $20 Billion On Farxiga, A Diabetes Drug Selected For Medicare Negotiation. AstraZeneca charges U.S. customers more than seven times more for Farxiga than customers in other high-income countries, even when considering net prices in the U.S.