BMS challenges Inflation Reduction Act
Client(s) Bristol Myers Squibb Company
Jones Day filed a complaint on behalf of a pharmaceutical manufacturer, Bristol Myers Squibb Company ("BMS"), challenging the constitutionality of the Inflation Reduction Act ("IRA"). The IRA requires pharmaceutical companies, under the threat of significant penalties, to sell their most innovative and effective medicines at government-dictated prices. BMS argues that the IRA violates the Fifth Amendment, which requires the government to pay just compensation if it takes property for public use, by requiring pharmaceutical manufacturers to provide innovative medicines to third parties at prices set by the government, without any requirement that those prices reflect fair market value. BMS also argues that the IRA violates the First Amendment by requiring manufacturers to state publicly that the government's price setting is a true negotiation that resulted in a fair price, even if it was not.
Bristol Myers Squibb Company v. Xavier Becerra, U.S. Secretary of Health & Human Services, et al., Civ. No. 3:23-03335 (ZNQ) (D.N.J.)