Banning Pay-for-Delay Deals to Lower Generic and Biosimilar Drug Costs.
This Act aims to reduce prescription drug costs by prohibiting "reverse payment" agreements where brand-name drug manufacturers pay generic or biosimilar companies to delay the launch of cheaper alternatives. By stopping these anticompetitive practices, consumers should gain faster access to medications that are typically 80-85% less expensive than branded drugs. The Federal Trade Commission (FTC) is empowered to enforce these rules and impose significant financial penalties.
Key points
Prohibits brand-name companies from compensating generic manufacturers to delay market entry of affordable drugs.
Expected outcome is faster availability of generic and biosimilar drugs, leading to substantial savings for consumers.
Companies violating the ban face civil penalties up to three times the value gained from the illegal agreement.
Expired
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