Klobuchar and Grassley Reintroduce Legislation On Pay-for-Delay Tactics

January 16, 2019
In The News

Senators Amy Klobuchar (D-Minnesota) and Chuck Grassley (R-Iowa) recently reintroduced bipartisan legislation aimed at bringing down prescription drug costs…. The aim of the bill was originally to prohibit brand name drug companies from compensating generic drug companies to delay the entry of a generic into the market, an action referred to in the industry as a “pay-for-delay” deal. Since the original introduction of the bill, the aim has expanded to include prohibiting biologics manufacturers from compensating biosimilar developers to delay the entry of competitor products into the market…. The bill is just one in a series of recently introduced items of legislation that seek to address the high cost of prescription drugs. In fact, the legislation is similar to a bill introduced by Congressman John Sarbanes, D-Maryland, in the House of Representatives in July 2018, titled the “Biosimilars Competition Act of 2018,” of which some key components were subsequently passed in September 2018. Sarbanes’ bill required both biologic and biosimilar developers to report agreements to the Federal Trade Commission (FTC) if they keep lower-cost drugs off the market.