Merck sues federal government over Medicare drug price negotiation

Merck & Co.
MRK,
-2.35%
on Tuesday filed a lawsuit against the federal government over the Medicare drug price negotiation program established last year as part of the Inflation Reduction Act. The program does not involve genuine negotiation but is “tantamount to extortion,” Merck alleged in the complaint, claiming that the “singular purpose of this scheme is for Medicare to obtain prescription drugs without paying fair market value.” The U.S. Department of Health and Human Services did not immediately respond to a request for comment. Merck shares are down 0.2% on Tuesday.