Drug Firms Sue to Stop Drug Prices in DTC Ads

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Merck, Eli Lilly and Amgen have filed suit in DC federal court seeking to stop an HHS rule to include drug prices in direct-to-consumer ads. Joined by the Association of National Advertisers, the complaint contends that the rule violates the companies’ First Amendment rights, and it would mislead patients about their out-of-pocket costs for prescription drugs.

 

The companies argue that the “list price is not, as patients will likely infer from the context, a suggested sales price for the retail transactions contemplated in advertisements. Rather, the rule requires manufacturers to use the gross price at which a prescription drug is offered to wholesalers, before rebates, discounts, or any other adjustments are applied.” They also argue that the mandated price figure not only ignores such wholesale price adjustments, but also fails to account for the insurance coverage that a significant majority of Americans have for their retail purchases of prescription drugs.

The HHS rule is expected to go in effect next month.

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