U.S. appeals court rejects rule requiring drug prices in TV ads

(Reuters) - A U.S. appeals court on Tuesday upheld a ruling that struck down a Trump administration rule that required pharmaceutical companies to include the wholesale prices of their drugs in television advertisements. The U.S.

Reuters June 17, 2020 00:05:43 IST
U.S. appeals court rejects rule requiring drug prices in TV ads

US appeals court rejects rule requiring drug prices in TV ads

(Reuters) - A U.S. appeals court on Tuesday upheld a ruling that struck down a Trump administration rule that required pharmaceutical companies to include the wholesale prices of their drugs in television advertisements.

The U.S. Court of Appeals for the District of Columbia Circuit ruled in favor of Merck & Co Inc, Eli Lilly and Co and Amgen Inc and said the U.S. Department of Health and Human Services (HHS) lacked authority to establish the rule.

"Because there is no reasoned statutory basis for its far-flung reach and misaligned obligations, the disclosure rule is invalid and is hereby set aside," U.S. Circuit Judge Patricia Millett wrote for the three-judge panel.

HHS did not immediately respond to a request for comment. The administration could either ask the full appellate court to rehear the case or ask the U.S. Supreme Court to take it up.

Alex Azar, HHS secretary, had announced the rule in May 2019, saying that forcing drugmakers to disclose their prices in direct-to-consumer TV advertising could help drive down drug costs if the companies were embarrassed by them.

HHS has said its power to establish regulations to administer Medicare and Medicaid gives it the authority to issue the rule to ensure Americans are aware of drugs' prices, potentially reducing the $450 billion annually spent on drugs under the programs.

The drugmakers sued, arguing that disclosing so-called list prices would mislead consumers, who with insurance and discounts would never pay that price, into wrongly believing the amount they would have to pay for medications is higher than reality.

A federal judge in July 2019 struck the rule down. The appeals court said on Tuesday that HHS acted "unreasonably" in construing its regulatory authority in imposing the disclosure requirement related to drug pricing.

(Reporting by Nate Raymond in Boston and Shivani Singh in Bengaluru; Editing by Saumyadeb Chakrabarty)

This story has not been edited by Firstpost staff and is generated by auto-feed.

Updated Date:

TAGS:

also read

France, Germany to agree to NATO role against Islamic State - sources
| Reuters
World

France, Germany to agree to NATO role against Islamic State - sources | Reuters

By Robin Emmott and John Irish | BRUSSELS/PARIS BRUSSELS/PARIS France and Germany will agree to a U.S. plan for NATO to take a bigger role in the fight against Islamic militants at a meeting with President Donald Trump on Thursday, but insist the move is purely symbolic, four senior European diplomats said.The decision to allow the North Atlantic Treaty Organization to join the coalition against Islamic State in Syria and Iraq follows weeks of pressure on the two allies, who are wary of NATO confronting Russia in Syria and of alienating Arab countries who see NATO as pushing a pro-Western agenda."NATO as an institution will join the coalition," said one senior diplomat involved in the discussions. "The question is whether this just a symbolic gesture to the United States

China's Xi says navy should become world class
| Reuters
World

China's Xi says navy should become world class | Reuters

BEIJING Chinese President Xi Jinping on Wednesday called for greater efforts to make the country's navy a world class one, strong in operations on, below and above the surface, as it steps up its ability to project power far from its shores.China's navy has taken an increasingly prominent role in recent months, with a rising star admiral taking command, its first aircraft carrier sailing around self-ruled Taiwan and a new aircraft carrier launched last month.With President Donald Trump promising a US shipbuilding spree and unnerving Beijing with his unpredictable approach on hot button issues including Taiwan and the South and East China Seas, China is pushing to narrow the gap with the U.S. Navy.Inspecting navy headquarters, Xi said the navy should "aim for the top ranks in the world", the Defence Ministry said in a statement about his visit."Building a strong and modern navy is an important mark of a top ranking global military," the ministry paraphrased Xi as saying.