Federal appeals court revives portion of Teva's Medicare price-negotiation lawsuit amid Austedo discount plans

Federal appeals court in the D.C. Circuit issued a decision Tuesday that partially overturns a lower‑court ruling that had dismissed Teva's challenge to Medicare's drug pricing negotiations.

The revived claim focuses on the company's argument that the Medicare Inflation Reduction Act's negotiation provisions unfairly target certain drugs, including Teva's antiepileptic Austedo.

The court's order does not resolve the entire case but allows Teva to continue pursuing that segment of the lawsuit while the broader dispute remains pending.

Industry observers note that the decision could influence how drug makers approach pricing strategies for Medicare‑covered products, especially as Austedo faces upcoming price cuts.