AbbVie sues US health agency over Botox price controls

robot
Abstract generation in progress

AbbVie sues US health agency over Botox price controls

FILE PHOTO: Boxes of Botox, owned by AbbVie, are seen in a clinic in Manhattan, New York, U.S., December 8, 2021. REUTERS/Andrew Kelly/File Photo · Reuters

By Jonathan Stempel

Thu, February 12, 2026 at 8:49 AM GMT+9 2 min read

In this article:

ABBV

-0.70%

By Jonathan Stempel

Feb 11 (Reuters) - AbbVie sued the U.S. Department of Health and Human Services on Wednesday, challenging a decision by the Centers for ‌Medicare & Medicaid Services to impose price controls for Botox.

In a complaint ‌filed in the Washington, D.C., federal court, AbbVie said Botox is among the medications covered under ​Medicare that Congress specifically excluded from price controls when that body passed the Inflation Reduction Act of 2022.

The North Chicago, Illinois-based drugmaker called its lawsuit the first arising from CMS’ allegedly violating one of those exclusions, specifically the exclusion of “plasma-derived products” ‌from price controls.

HHS did not ⁠immediately respond to a request for comment. The lawsuit also names Health Secretary Robert F. Kennedy Jr., CMS and CMS ⁠administrator Mehmet Oz as defendants.

Botox injections are often used to smooth facial wrinkles, but can also be used to treat several medical conditions including eye- and neck-movement disorders, ​neck spasms, ​incontinence and migraines.

AbbVie said one-third of Botox ​is human serum albumin, a ‌protein extracted from human blood plasma and essential to the product’s safety and efficacy.

“Because HSA is sourced from plasma collected from human donors, Botox is a ’plasma-derived product’ that Congress excluded from the price-control program,” the complaint said.

AbbVie said the price controls force it to sell Botox at “confiscatory prices” to Medicare beneficiaries, or risk “ruinous” ‌tax liability and exclusion from federal government ​programs, and falsely admit that the price it ​charged was “fair.”

The drugmaker said CMS violated ​its free speech rights under the U.S. Constitution’s First Amendment ‌by telling it what to say ​about the price.

It also ​said CMS’ actions amounted to a due process violation and illegal “taking” under the Fifth Amendment. Its lawsuit seeks to end the price controls.

Botox accounted ​for just over 10% ‌of AbbVie’s $61.16 billion of revenue last year, with purchases for therapeutic ​uses accounting for about 6%.

(Reporting by Jonathan Stempel in New York; ​Editing by Rod Nickel and David Gregorio)

Terms and Privacy Policy

Privacy Dashboard

More Info

This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.
  • Reward
  • Comment
  • Repost
  • Share
Comment
0/400
No comments
  • Pin

Trade Crypto Anywhere Anytime
qrCode
Scan to download Gate App
Community
  • 简体中文
  • English
  • Tiếng Việt
  • 繁體中文
  • Español
  • Русский
  • Français (Afrique)
  • Português (Portugal)
  • Bahasa Indonesia
  • 日本語
  • بالعربية
  • Українська
  • Português (Brasil)