On Tuesday, John & Johnson (J&J) filed a court case suing the Biden administration over Medicare’s new authority to lower drug prices, joining Merck and Bristol Myers Squibb to challenge the controversial provision of the Inflation Reduction Act.
The Inflation Reduction Act, signed in August 2022, aims, among other things, to fight inflation, reduce the deficit and reduce carbon emissions. It includes reforms to the tax system, investments in clean energy and allows Medicare to negotiate prescription drug prices.
The lawsuit argues that the IRA’s Medicare price negotiations violate the First and Fifth Amendments to the U.S. Constitution by “forcing” the company to “agree” to the government’s “negotiation” on a “fair” price and the company is forcing “false and misleading statements,” the prosecution said.
In addition, the company believes that the IRA will suppress medical advances.
“We believe that the IRA’s pricing policies will limit medical innovation, limit patient access and choice, and negatively impact the overall quality of patient care,” J&J wrote in a statement. press release on Tuesday.
The U.S. Department of Health and Human Services said it will “strongly defend the President’s Price Bargaining Act, which is already helping to reduce health care costs for seniors and people with disabilities.” CNBC.
How much did J&J pay for the talc cancer lawsuit?
Also on Tuesday, Johnson & Johnson (J&J) was ordered to pay $18.8 million to a California man who claimed he got cancer from using the company’s baby powder, Reuters reported.
Emory Hernandez Valadez, 24, filed a lawsuit against J&J last year claiming he developed mesothelioma as a result of prolonged exposure to the company’s talc since childhood.
Related: Johnson & Johnson must pay $55 million in talcum powder trial
Talc is a soft mineral used in various consumer products such as baby powder and cosmetics for its ability to absorb moisture and reduce friction. However, its use has also been the subject of controversy, particularly with J&J, which has facing thousands of lawsuits alleging that its talc-based products are contaminated with carcinogenic asbestos.
In April, the company filed for bankruptcy through a subsidiary, LTL Management, with a proposal to settle more than 38,000 lawsuits for $8.9 billion. However, most lawsuits have been halted during the bankruptcy proceedings. The reason Hernandez’s trial went ahead was because of his terminal condition and the rarity of his form of mesothelioma, which set it apart from most cases against J&J, Reuters added.
The jury ruled in favor of Hernandez on Tuesday. Although Hernandez was awarded damages for medical bills and struggles, the jury did not award punitive damages to J&J.
The company plans to appeal the verdict, claiming its products are safe and do not cause cancer, according to Reuters.
Erik Haas, J&J vice president of litigation, told the outlet that the verdict “is inconsistent with the decades of independent scientific evaluations confirming that Johnson’s Baby Powder is safe, contains no asbestos and does not cause cancer.”
Related: Johnson & Johnson hit with over $1 billion verdict on hip implants
