Senate Bipartisan Agreement on FDA Reform Bills
Senate Health, Education, Labor, and Pensions (HELP) Committee chairman Bernie Sanders (I-VT) and ranking member Bill Cassidy (R-LA) announced 4/25 that a legislative bipartisan deal has been reached to expand the availability of low-cost generic drugs, clarify orphan drug exclusivity, and reform the pharmacy benefit managers (PBM) equation in drug pricing. The HELP Committee says in a 4/25 release that it plans to hold a markup 5/2 of the following four bills:
- S 1067, Ensuring Timely Access to Generics Act of 2023
- S 1114, Expanding Access to Low-Cost Generics Act of 2023
- S 1214, RARE Act
- S____, Pharmacy Benefit Manager Reform Act
Ensuring Timely Access to Generics Act of 2023 was introduced by Jeanne Shaheen (D-NH) and Susan Collins (R-ME) and it aims to increase generic competition through improved oversight of citizen petition process. “Currently, the process is being exploited by bad actors who fill citizen petitions in order to delay the approval of generic competitors and extend their patent protections,” the lawmakers said in a release. “This legislation ensures the FDA has the ability to reject citizen petitions if they believe that the primary purpose of the petition is to delay the approval of an application, thereby increasing competition in the marketplace and lowering costs for patients.”
Expanding Access to Low-Cost Generics Act was introduced by Senators Tina Smith (D-MN) and Mike Braun (R-IN) to prevent pharmaceutical company actions to block generic drug competition through a practice called “parking.” The senators say that parking occurs when a brand company agrees not to sue the first company that submits an application to market a related generic (first filer) and enters into an agreement where this first filer agrees to delay bringing its generic drug to market. “No other company can bring a generic version of a brand name drug to market until 180 days after the first filer has done so,” they say, adding that such anti-competitive agreements allow fewer lower-cost generic products to come to market.
Additionally, the RARE Act (Retaining Access and Restoring Exclusivity Act) would address an appeals court decision suggesting FDA was wrong to base previous orphan drug exclusivity decisions on the uses or indications for which a drug is approved instead of all uses or indications within an orphan-designated disease or condition. Orphan drug exclusivity (ODE) has been in limbo since the 9/2021 11th Circuit Court of Appeals decision in Catalyst Pharms v. Becerra struck down the agency’s indication-specific interpretation of ODE (see earlier story). The bill would fully restore FDA’s approach to base exclusivity decisions on previous and long-standing rulings related to a drug’s approved uses/indications.