Common use of Inflation Reduction Act Clause in Contracts

Inflation Reduction Act. Subject to Section 7.5.3(e), if, during the Royalty Term for a given Royalty Product, such Royalty Product is designated as a “selected drug” by the Secretary of the United States Department of Health and Human Services (or similarly designated by another United States national or state official), and ▇▇▇▇▇▇▇ is required to negotiate a Maximum Fair Price that will apply to sales of such Royalty Product during the Price Applicability Period, then the royalty rates set forth in Section 7.5.1 solely with respect to Net Sales in the United States will be reduced by [***].