Biden announces first 10 drugs for US price negotiations

The Biden administration on Tuesday released its list of 10 prescription medicines that will be subject to the first-ever price negotiations by the Medicare drug program.The move comes after the signing of the Inflation Reduction Act in 2022, granting the Medicare agency the right to negotiate drug prices with manufacturers — the first such instance in 20 years.

The act mandates that negotiated drug prices be reduced by at least 25 percent, with the new prices expected to take effect by 2026. Pharmaceutical companies, including AstraZeneca, Johnson & Johnson, and Merck, have initiated lawsuits, arguing that the act is unconstitutional and hampers innovation in the industry.