PhRMA-Led Suit Against IRA Dismissed on Jurisdictional Technicality

A federal judge in Texas has handed the Biden administration a win in its quest to control Medicare drug pricing, dismissing a lawsuit that challenged the legality of negotiating Medicare drug prices as required by the Inflation Reduction Act (IRA).

Judge David Ezra dismissed the case on a jurisdictional technicality of improper venue. The suit was jointly filed in the U.S. District Court for the Western District of Texas Austin Division by the National Infusion Center Association (NICA), PhRMA, and the Global Colon Cancer Association (GCCA).

Since NICA was the only party with a physical presence in the jurisdiction, Ezra dismissed the suit. “With NICA dismissed, no defendant would reside in this district, and nothing suggests that a substantial part of the events or omissions giving rise to the claim occurred in this district,” he wrote.

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