A federal judge has temporarily blocked Colorado’s first-in-the-nation prescription drug price cap, preventing a cap on Amgen’s Enbrel from taking effect while the company’s lawsuit against the state proceeds.
U.S. District Judge Daniel Domenico ruled Amgen is substantially likely to succeed on its claim that the cap is preempted by federal patent law, citing the federal circuit’s 2007 decision in Biotech Industry Organization v. District of Columbia, which struck down a similar district law capping “excessive” drug prices. The court found that balancing innovators’ profits against consumer drug access is a decision reserved for Congress, not individual states.
Here’s four things to know:
1. The board finalized the cap Oct. 3 after a rulemaking process that began in May, setting a $600 limit on a 50-milligram dose of Enbrel — about $31,200 annually and roughly 40% below the state’s average plan payment of $53,049 per patient. Stakeholders had pushed the board to benchmark the cap against CMS’ maximum fair price and estimated the policy could save Coloradans $32.8 million a year.
2. Amgen argued it would suffer irreparable harm because 2027 wholesaler contract negotiations were already underway and could not easily be renegotiated once the cap took effect. The judge agreed, noting the board’s sovereign immunity would likely shield it from a later damages suit.
3. This marks Amgen’s second suit against the board. A federal judge dismissed Amgen’s first lawsuit in March 2025 after ruling the price ceiling wouldn’t limit what Amgen could charge; the board’s later decision to formally set a cap gave Amgen standing to sue again.
4. Colorado established the five-member board in 2021 as the first of its kind in the country. Mr. Domenico acknowledged the state’s affordability goals as legitimate but wrote that capping a patented drug’s price is not a tool available to it under binding federal precedent.
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