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They're not dropping their lawsuits, but for time being Big Pharma have no other options but to deal with Medicare/Medicaid drug pricing scheme. Deadline is looming and Biden administration has been quite clear there would be serious consequences and repercussions for those who don't come to table.
About time Medicare is able to force these companies to negotiate. No large purchaser of goods or services accepts the offered price. There is always a negotiation.