A federal judge has put the brakes on what would have been the first state-imposed price cap on a prescription drug in the United States, blocking Colorado from limiting the cost of Amgen’s widely used arthritis medication Enbrel.
Chief Judge Daniel Domenico of the Denver federal court issued the preliminary injunction on Wednesday, finding that forcing Amgen to sell Enbrel at a lower price would likely cause the company serious and irreparable financial damage. The judge noted the cap could also disrupt Amgen’s future contract negotiations with wholesalers and distributors.
In his ruling, Domenico wrote that “as a matter of basic economic logic, Amgen is likely to be significantly harmed by a cap on the price of its product, even if the cap applies unevenly” throughout the supply chain.
The judge acknowledged that Colorado has a legitimate interest in making Enbrel more affordable for patients. He suggested the state could pursue alternatives such as subsidies or price negotiations — similar to approaches used at the federal level — but concluded that “capping the price of a patented drug” was not a legally permissible path.
Last October, the Colorado Prescription Drug Affordability Board had set an Enbrel price ceiling of $600 for a 50-milligram weekly dose, which works out to $31,200 annually. That cap was set to take effect on January 1, 2027. Amgen had been facing a July 5 deadline to decide whether it would continue offering the drug in Colorado at all.
Enbrel, known chemically as etanercept, treats arthritis and plaque psoriasis and is one of Amgen’s top-selling products, generating $2.23 billion in sales in 2025. Its current list price tops $100,000 per year.
The Thousand Oaks, California-based pharmaceutical company had argued that Colorado’s price cap conflicted with federal patent law, violated its constitutional due process rights, and put patients’ access to the medication at risk.
A spokeswoman for Colorado’s Division of Insurance, Genna Morton, said the agency is unable to comment while the case is ongoing. Representatives for Amgen and its legal team did not respond to requests for comment.
The case highlights a broader challenge facing American consumers: the U.S. spends roughly three times what other wealthy nations pay for brand-name medications, prompting both federal and state governments to seek ways to bring those costs down.
Judge Domenico was appointed to the federal bench by Donald Trump. The president has since nominated him to serve on the 10th U.S. Circuit Court of Appeals, which has jurisdiction over Colorado.
