This Week in Drug Pricing: Pharma Tariffs Would Raise Drug Prices, Deepen Patient Struggles, Courts Hear Arguments in Ongoing Lawsuits Against Medicare Negotiation, Medicare Coverage Expansion for Anti-Obesity Drugs Halted and ICYMI

Welcome to the Week in Review.

Pharma Tariffs Would Raise Drug Prices, Deepen Patient Struggles

Despite President Trump’s decision to pause broad-based tariffs on most countries, concerns are mounting as he continues to double down on potential pharmaceutical tariffs — a move that would drive up drug prices for Americans. The U.S. already pays the highest prescription drug prices in the world, and patients are worried. “Tariffs will exacerbate that problem,” Merith Basey, executive director of Patients For Affordable Drugs, told CNN. “Prescription drugs aren’t luxury goods; they’re essential to people’s health and survival.” New tariffs could increase manufacturing costs, worsen the ongoing drug shortage crisis, and make it harder for patients to access medications they need. With one in three Americans already struggling to afford their prescriptions, these added costs risk pushing more people to skip or ration their medications. P4AD will continue to monitor developments and speak out against any policy that would raise drug prices. — (POLITICO, The Hill, NBC5, CNN, POLITICO)

Courts Hear Arguments in Ongoing Lawsuits Against Medicare Negotiation 

Last Friday, Boehringer Ingelheim faced a skeptical panel during oral arguments before the Second Circuit Court of Appeals, as judges questioned the company’s claims that the Medicare negotiation program imposes unconstitutional conditions. The government’s defense was so strong that the lawyer representing the case used only a fraction of their allotted time. On Tuesday, a Third Circuit panel heard challenges from Novartis and Novo Nordisk. The panel appeared unconvinced by Novartis’ argument that the program constitutes an unlawful “taking” under the Fifth Amendment. Novo Nordisk faced scrutiny over its claim that CMS unlawfully grouped six of its insulin products for negotiation. While judges appeared more engaged with Novo Nordisk’s arguments, the panel largely deferred to CMS’ authority under the law, suggesting the program remains on solid footing. These hearings mark the first time the Trump Administration has defended Medicare negotiation in court — and so far, the trend of judges remaining unconvinced by pharmaceutical corporations’ arguments is continuing. — (Bloomberg, Courthouse News, Endpoints, Inside Health Policy)

Medicare Coverage Expansion for Anti-Obesity Drugs Halted

The Trump administration has declined to finalize a Biden-era proposed rule that would have expanded Medicare coverage to include GLP-1 drugs like Ozempic and Wegovy for obesity. While the drugs remain covered for diabetes, heart disease, and sleep apnea, Medicare is still barred by law from covering them for obesity alone. The proposal’s estimated $40 billion price tag raised alarms, but the real scandal is why the drugs are priced so high to begin with. Studies show Ozempic can be manufactured for less than $5 a month, yet it carries a U.S. list price of nearly $1,000 a month – considerably higher than in comparable countries. – (Axios, CNBC, Peterson-KFF)

ICYMI: A new report from I-MAK reveals how drugmakers Novo Nordisk and Eli Lilly are abusing the patent system to extend monopolies on blockbuster GLP-1 drugs like Ozempic, Wegovy, Mounjaro, and Zepbound. It’s a clear reminder why Congress must urgently pass bipartisan patent reform to restore competition, end monopoly abuse, and lower drug prices.

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