Chief Judge Colm F. Connolly of the US District Court for the District of Delaware has rejected AstraZeneca's (AZN) attempt to sue Medicare over drug price negotiations. The judge ruled that AstraZeneca is not entitled to sell the government drugs at prices that the government does not agree to pay.
Yahoo Finance Health Reporter Anjalee Khemlani joins the Live show to discuss the court ruling and what this means for pharmaceutical companies at large.
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Editor's note: This article was written by Nicholas Jacobino
Video Transcript
JULIE HYMAN: Court ruling against AstraZeneca in its legal fight against the Biden administration over drug price negotiations. Our own Anjalee Khemlani has been following this very closely. So talk to us about this ruling, and its significance.
ANJALEE KHEMLANI: Yes. So this is the third strike against the pharma industry right now, with AstraZeneca being delivered the loss from the federal district court in Delaware. District Court Judge Connolly saying that the pharma company AstraZeneca is not entitled to sell the government drugs at prices the government won't agree to pay. And this is against that Medicare drug pricing negotiation that is a day before the deadline for that for these companies to accept the first around, the first offer essentially from the government, that is tomorrow. So this timing of this--
This is the first company, it's important to note, that has had it's-- that has faced a loss. The last two were the largest business lobbying group the US Chamber of Commerce and then the drug lobbying group PhRMA So those are the two that have been tossed. But expectations are that these will all be appealed and eventually reach the US Supreme Court. But as it stands right now, this is the third one, and we'll just wait to see what happens tomorrow.
