On Monday, a US federal judge rejected the Donald Trump administration's rule requiring drug manufacturers to indicate prices in television commercials. This rule is one of Trump's central efforts to reduce the cost of prescription drugs.

Washington DC District Judge Amit Mehta made this decision, which is the latest blow to a series of actions taken by the US government in health care. Judge Mehta sided with the pharmaceutical company. He said the regulations of the US Department of Health and Human Services (Health and Human Services Department) would violate freedom of speech and exceed the agency's legal powers.

Merck & Co. Inc., MRK), Eli Lilly & Co. (LLY), and Amgen Inc. (Amgen Inc., AMGN), three pharmaceutical companies have filed this lawsuit.

The rule, which was completed in May of this year, is part of Trump's broader plan to reduce drug prices. It was originally scheduled to take effect on Tuesday. The regulation requires that most prescription drugs covered by the US Medicare (Medicare) and Medicaid (Medicaid) programs be listed in direct-selling television commercials. The judge's ruling will prevent the rule from taking effect.

By Stephanie Armour; Write to Stephanie Armour at stephanie.armour@wsj.com


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