2 Bills Affecting FDA Signed Into Law
President Biden has signed into law two FDA-related bills that are intended to help lower drug/biologic prices. The Advancing Education on Biosimilars Act of 2021 (S 164) requires FDA to advance education and awareness programs for health care providers on biological/biosimilar products, including by developing or improving continuing education programs that address the prescribing of biological products and biosimilars. FDA is directed to maintain and operate a Web site to provide educational materials about biological products, including what products are interchangeable, as well as how to report any adverse events.
Additionally, the Ensuring Innovation Act (S 415) clarifies that the five-year new chemical entity exclusivity is only available for drugs containing no active component that has previously been approved in the U.S. Senator Bill Cassidy (R-LA), who co-sponsored the measure said the law will help reduce drug costs and improve access to more affordable generic drugs by ensuring that market exclusivity, which can delay generic drugs from entering the market, is only made available to truly innovative products.
The bill codifies FDA’s approach to granting five years of exclusivity to drugs with no previously approved “active moiety,” instead of “active ingredient.” The agency defines active moiety as the molecule responsible for the physiological or pharmacological action of the drug.
Cassidy said companies have found loopholes to claim new innovations on the same drug, that aren’t really innovations, to extend their exclusivity and prevent cheaper generics from coming to market. The new law is intended to close the loopholes to prevent the gaming of market exclusivity.