To prohibit brand name drug companies from compensating generic drug companies to delay the entry of a generic drug into the market, and to prohibit biological product manufacturers from compensating biosimilar and interchangeable companies to delay the entry of biosimilar biological products and interchangeable biological products.
Sponsors
Legislative Progress
ReportedReported by Mr. Grassley, with an amendment
Ms. Klobuchar (for herself, Mr. Grassley, Mr. Durbin, Mr. Cramer, …
Summary
What This Bill Does
Prohibits brand-name drug companies from compensating generic companies to delay market entry (reverse payment settlements), preserving the intent of the 1984 Drug Price Competition Act to facilitate generic competition.
Who Benefits and How
Consumers benefit from faster generic drug access and lower prices. Federal government saves on 40%+ of prescription drug spending. Generic manufacturers compete without being bought off.
Who Bears the Burden and How
Brand-name companies cannot pay generics to stay off market. Settlements must not include value transfers for delay. FTC gains clear authority over pay-for-delay practices.
Key Provisions
- Notes 91% of prescriptions are generic but only 18% of spending
- Generic discounts average 80-85% off brand price
- Targets reverse payment settlement agreements
- Preserves 1984 Act intent for early generic entry
Evidence Chain:
This summary is derived from the structured analysis below. See "Detailed Analysis" for per-title beneficiaries/burden bearers with clause-level evidence links.
Primary Purpose
Prohibits pay-for-delay settlements between brand and generic drug companies
Policy Domains
Legislative Strategy
"End anticompetitive settlements that delay generic drug entry"
Bill Structure & Actor Mappings
Who is "The Secretary" in each section?
We use a combination of our own taxonomy and classification in addition to large language models to assess meaning and potential beneficiaries. High confidence means strong textual evidence. Always verify with the original bill text.
Learn more about our methodology