Colorado drug affordability board faces suit over price fixing Image By HPN Staff Key Points For the second time, Amgen has sued Colorado’s Prescription Drug Affordability Review Board over its decision to cap the price of Enbrel, an autoimmune drug, at $600 per 50mg weekly dose starting in 2027, arguing the move violates federal patent law and threatens patient access. Studies cited in the case warn that drug price controls could significantly reduce pharmaceutical innovation, leading to hundreds fewer new drugs, major R&D funding cuts, and delays in bringing treatments to market. Amgen’s lawsuit mirrors a wider industry pushback against government-imposed price limits, with companies like Merck also suing the federal government over similar provisions in the Inflation Reduction Act. For the second time, pharmaceutical company Amgen has filed suit against the Colorado Prescription Drug Affordability Review Board (PDAB) for capping the price of its autoimmune drug, Enbrel. The cap is supposed to take effect in 2027 and would limit the price of the drug to $600 per 50mg weekly dose. Enbrel is used to treat such diseases as rheumatoid and psoriatic arthritis, ankylosing spondylitis and plaque psoriasis. The suit, filed Oct. 30 in the U.S. District Court of Colorado, says the PDAB was unconstitutionally violating federal patent law when it “found Enbrel to be ‘unaffordable’ — a term not defined in any statute or regulation — and voted to subject Enbrel to a price cap known as an ‘upper payment limit’ (UPL).” The suit says the board’s actions jeopardize access to their drug and others, “endangering the lives and well-being of countless patients with serious medical conditions.” Amgen filed another suit against PDAB in 2024, defending the same drug. The district court ruled then that Amgen would not be harmed by the board’s actions, dismissing the case but allowing for another suit to be filed. Why it matters A 2021 study published by a University of Chicago economist found that drug price controls result in fewer drugs, more delays in approving new drugs, and a loss in health care access. The study was focused on federal legislation to cap the price of pharmaceutical drugs in the Inflation Reduction Act (IRA). It found that such legislation would cause: An 18.5% decline in research and development spending or $663 billion through 2039 135 fewer new drugs A seven-year delay to approve new drugs A loss of 331.5 million life years in the U.S. Another study found that price controls would lead to a 29-60% reduction in R&D from 2021-2039 and the loss of 167 to 342 new drugs approved during that time. In the suit, Amgen estimated it takes approximately 10 to 15 years and $2 billion to bring a new drug to market. The bigger picture Amgen is asking the court to void the Colorado rule because it conflicts with federal patent law, denies Amgen due process of law and regulates out-of-state transactions. They are asking for an award of costs and attorney fees and “such other and further relief as may be just and proper.” The company is not alone in fighting drug price fixing. Following the passage of the IRA, Merck sued the federal government over a provision in the law that allowed Medicare to negotiate prices of certain medications. SUGGESTED STORIES Colorado drug price cap raises concerns over access and innovation Colorado’s Prescription Drug Affordability Review Board (PDAB) last week became the first state to set a price cap on a specific prescription drug, limiting a 50-milligram dose of Enbrel, used to treat rheumatoid arthritis, to $600. Since its introduction in 1998, Enbrel’s Read more Michigan House bill will increase drug price transparency This is a lightly edited excerpt of testimony provided to the Michigan House’s Health Policy Committee. The federal 340B program requires drug makers to sell their products to some hospitals at a discount. Hospitals and contract pharmacies can then resell them and p Read more
Colorado drug price cap raises concerns over access and innovation Colorado’s Prescription Drug Affordability Review Board (PDAB) last week became the first state to set a price cap on a specific prescription drug, limiting a 50-milligram dose of Enbrel, used to treat rheumatoid arthritis, to $600. Since its introduction in 1998, Enbrel’s Read more
Michigan House bill will increase drug price transparency This is a lightly edited excerpt of testimony provided to the Michigan House’s Health Policy Committee. The federal 340B program requires drug makers to sell their products to some hospitals at a discount. Hospitals and contract pharmacies can then resell them and p Read more
