"The Program cannot qualify as a physical taking under the Takings Clause because it does not 'compel the surrender' of property, or impose any 'physical invasion or restraint upon' it, and the owner 'retain[s] the rights to possess, donate, and devise' the property."
"The Third Circuit held that the companies were 'incorrect' that the government's Program amounts to a physical taking 'because it permits the government to physically appropriate their drugs without paying just compensation.'"
"Since the Program is based on a negotiation process, it is voluntary, said the majority. 'If the Companies dislike the prices the government is willing to pay, they are free.'"
The U.S. government opposed a petition from Janssen Pharmaceuticals and Bristol Myers Squibb regarding the Medicare Drug Price Negotiation Program. A Third Circuit decision affirmed that the program, part of the Inflation Reduction Act, does not violate constitutional rights. The companies claimed the program effects an uncompensated taking, compels speech, and imposes unconstitutional conditions. The court ruled that the program is voluntary and does not involve physical appropriation of drugs, allowing companies to negotiate prices without losing property rights.
Read at IPWatchdog.com | Patents & Intellectual Property Law
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