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Big Pharma is ‘reeling’ over the Inflation Reduction Act. Now a Philly-area drugmaker is fighting back.

Merck has filed a lawsuit alleging the Inflation Reduction Act’s pharmaceutical price negotiation program for Medicare amounts to extortion and violates the U.S. Constitution.

A Merck scientist conducts research in West Point, Pa. The Biden administration in August announced that Merck’s drug Januvia, which treats type 2 diabetes, will be among the first medications subject to Medicare-negotiated prices starting in 2026.
A Merck scientist conducts research in West Point, Pa. The Biden administration in August announced that Merck’s drug Januvia, which treats type 2 diabetes, will be among the first medications subject to Medicare-negotiated prices starting in 2026.Read moreMatt Rourke / AP