Novo Nordisk et al. v. Becerra et al.

Docket No.
District Court
New Jersey


  • Declaration that CMS guidance is unconstitutional and violates the APA
  • Declaration that the IRA is unconstitutional and violates the Due Process Clause
  • Enjoin defendants from implementing the law

Litigation Content

Why this Matters:

The plaintiffs argue that the Inflation Reduction Act’s Medicare drug negotiation process violates the First Amendment, Due Process Clause of the Fifth Amendment, the Nondelegation Doctrine, the Administrative Procedure Act, and exceeds statutory authority. Medicare’s authority to negotiate the price of certain single-source, high-priced drugs is estimated to result in substantial savings for Medicare beneficiaries and the federal government. 

Potential Impact:

Successful challenges to Medicare’s negotiation authority would negate savings to Medicare beneficiaries and taxpayers, and could severely restrict federal regulatory authority in the health care arena.