AbbVie Sues US Government Over Botox Price Controls Under Inflation Reduction Act

AbbVie has filed a lawsuit against the US Department of Health and Human Services (HHS) to challenge price controls on its blockbuster drug, Botox. The legal action targets the Centers for Medicare & Medicaid Services (CMS) and its decision to include Botox in price negotiations mandated by the 2022 Inflation Reduction Act (IRA). Filed in a Washington, D.C. federal court, the lawsuit names CMS administrator Mehmet Oz as a primary defendant. AbbVie argues that the government’s authority to impose these price caps threatens the commercial viability of one of its most significant revenue drivers. This move reflects broader pharmaceutical industry resistance to the IRA, which aims to lower drug costs for Medicare beneficiaries. Market analysts view the regulatory pressure and legal uncertainty as potential headwinds for AbbVie's long-term profit margins.