Several major drugmakers, including Merck & Co. Inc. MRK, -0.51% and AstraZeneca PLC AZN, +1.36%, say they’re moving forward with the Medicare drug-price negotiation process ahead of this Sunday’s deadline to sign agreements to participate–but industry players are also waiting for a key legal ruling that could put the program on pause ahead of that date.
Merck, which was the first drugmaker to allege in court that the negotiation program is unconstitutional, said in a statement to MarketWatch that it will sign the initial agreement “under protest” as it remains focused on challenging the program in court. The company’s blockbuster diabetes drug Januvia was among the drugs selected in late August for the first Medicare negotiations.
Other major drugmakers affected by the negotiation process are likely to participate, analysts say, but may be holding out for a potentially favorable ruling on the Chamber of Commerce request for a preliminary injunction. Judge Michael Newman of U.S. District Court for the Southern District of Ohio, an appointee of former President Donald Trump, heard oral arguments on the issue on Sept. 15 but has not yet ruled on the request.
Drugmakers have until Monday to submit data for Medicare to consider in negotiating a maximum fair price for the selected drugs.