Bill Would Speed Generic, Biosimilar Entry: CBO
A Congressional Budget Office (CBO) analysis of S. 1895, the Lower Health Care Costs Act, sponsored by Sen. Lamar Alexander (R-TN), says that provisions in the measure would allow some generic or biosimilar drugs to enter the market earlier. The analysis says the bill has several provisions that would modify FDA’s regulatory framework and affect approvals for certain drugs and biologics. “CBO expects that implementing these changes would allow some generic or biosimilar drugs to enter the market earlier, on average, than would be the case under current law,” it says.
One provision would allow the agency to deny a citizen petition if it determines that the petition was submitted with the primary purpose of delaying the approval of an application or if the petition does not raise valid scientific or regulatory issues.
A second provision would allow FDA to approve some generic drug applications that are ready for full approval if no first generic applicant has received final approval and other conditions are satisfied.
Under current law, CBO says, FDA is unable to approve a generic drug application if safety information in the reference-listed drug’s labeling is protected by market exclusivity. The bill would permit FDA to require the affected application sponsors to include a statement of appropriate safety information on the label of the generic drug to ensure safe use, thus allowing the agency to approve the product for marketing.
Finally, a fourth section would create a “private right of action” that would allow developers of generic drugs or biosimilar products to sue manufacturers of innovator products if sufficient quantities of reference samples of their branded product are not made available for premarket testing. The provision also would remove a statutory requirement that manufacturers of generic or biosimilar versions of certain drugs that carry a significant risk of serious side effects use the same risk management system as the innovator drugs to ensure safe use of the product. FDA would be given more discretion to permit manufacturers to use comparable safety systems on a case-by-case basis, CBO says.