Johnson & Johnson Challenges the Inflation Reduction Act

Johnson & Johnson is a Fair360 Top 50 Hall of Fame company.


Johnson & Johnson recently filed litigation against the U.S. Department of Health and Human Services and the Centers for Medicare and Medicaid Services to challenge the drug pricing provisions of the Inflation Reduction Act (IRA).

“The IRA breaks the agreement at the heart of the patent and regulatory laws: when companies invest and succeed at developing innovative new treatments, they are awarded time-limited and constitutionally protected rights in their innovation,” the company wrote.

The IRA requires Janssen to price its medicines significantly below market prices, upending the current cycle of pharmaceutical innovation that sparks innovative treatments and creates generic medicines — which account for 90% of prescriptions filled in the U.S.

If manufacturers do not follow the terms of the IRA, they face penalties of up to 1900% of a selected drug’s daily sales or are forced to withdraw all of their products from both Medicare and Medicaid.

“We believe that the IRA’s pricing provisions will constrain medical innovation, limit patient access and choice, and negatively impact the overall quality of patient care. We have a responsibility to challenge the current version of the law to protect our ability to continue developing transformative medicines for patients now and in the future,” Johnson & Johnson wrote.

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