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DC Court of Appeals rules Trump administration cannot force pharma companies to include drug costs in ads

The D.C. Circuit Court of Appeals held on Tuesday that the Trump Administration does not have the authority to compel drug companies to add the price of medicines to their television advertisements. The case overturned a rule published by that Department of Health and Human Services’ Centers for Medicare and Medicaid Services that required “drug manufacturers to disclose in their television advertisements the wholesale acquisition cost of many prescription drugs and biological products for which payment is available under Medicare or Medicaid.”

Various drug manufacturers, including Merck & Co., Inc., Eli Lilly and Company, and Amgen Inc., were joined by the Association of National Advertisers, Inc. in challenging the rule in June 2019.

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