DENVER — Colorado’s first attempt to cap the price of an unaffordable prescription drug has been blocked by a judge, marking the first legal hurdle as the state tries to rein in pharmaceutical companies.
In a ruling filed Wednesday, Judge Daniel Domenico said pharmaceutical company Amgen is likely to succeed in its lawsuit because Colorado’s price cap interferes with federal patent law. He blocked the price cap while the lawsuit plays out.
In 2025, Colorado’s Prescription Drug Affordability Board (PDAB) capped the price of Enbrel, an arthritis drug, at $31,000 a year. That’s significantly less than the $53,000 insurance companies have been paying annually.
Since the drug was introduced in 1998, its wholesale price has increased more than 1,500%.
The price cap was supposed to take effect on January 1, 2027.
Colorado Consumer Health Initiative Deputy Director Adam Fox says Amgen will draw out the legal process as long as possible.
“It really puts more affordable drugs out of reach for Coloradans, at least in the short run, and we know that Coloradans really want to see more affordable drugs, so that they can actually access the care that they need,” Fox said.
Colorado is the first state to price-cap a drug.
The decision calls into question the future of the PDAB.
Since its formation in 2021, Enbrel has been the only drug the board has price-capped. Currently, the PDAB is considering a price cap on Cosentyx.
Judge Domenico acknowledged that many Americans cannot afford valuable prescription medications, but said Colorado had other ways to help citizens, including subsidization or negotiating lower prices.
“I think it's a real oversimplification of how pharmaceutical manufacturers approach these situations because I think Colorado has done a lot to try to control healthcare costs, and prescription drugs continue to rise to really unaffordable levels,” Fox said.
The Colorado Division of Insurance, which oversees the PDAB said they are currently reviewing the order but cannot comment on pending litigation.
A spokesperson for Amgen said: “We are pleased that the U.S. District Court for the District of Colorado granted our motion for a preliminary injunction, blocking the Colorado Prescription Drug Affordability Board from enforcing an Upper Payment Limit for Enbrel. We appreciate the court's careful consideration and remain confident in our position as the case moves forward.”
