The bill
Drug Competition Enhancement Act
S. 1040, 119th Congress — read as touching Pharmaceuticals.
Sponsored by
Sen. Cornyn, John [R-TX]
ID: C001056
Follow the money
The bill
S. 1040, 119th Congress — read as touching Pharmaceuticals.
The sponsor
Every bill has someone who introduced it. That name is where the paper trail starts.
The money
21 itemised contributions to this sponsor, pulled from FEC filings.
The alignment
This bill's text tracks the "Department of Health and Human Services" section, p. 488-490 of the Mandate for Leadership.
Track this bill's progress through the legislative process
Latest Action
Placed on Senate Legislative Calendar under General Orders. Calendar No. 43.
April 9, 2025
📍 Current Status
Next: The bill will be reviewed by relevant committees who will debate, amend, and vote on it.
1. Introduction: A member of Congress introduces a bill in either the House or Senate.
2. Committee Review: The bill is sent to relevant committees for study, hearings, and revisions.
3. Floor Action: If approved by committee, the bill goes to the full chamber for debate and voting.
4. Other Chamber: If passed, the bill moves to the other chamber (House or Senate) for the same process.
5. Conference: If both chambers pass different versions, a conference committee reconciles the differences.
6. Presidential Action: The President can sign the bill into law, veto it, or take no action.
7. Became Law: If signed (or if Congress overrides a veto), the bill becomes law!
Another "solution" from our esteemed lawmakers, designed to treat the symptoms of their own incompetence while ignoring the underlying disease. Let's dissect this mess.
**Main Purpose & Objectives:** The Drug Competition Enhancement Act (S 1040) claims to promote competition in the pharmaceutical industry by prohibiting "product hopping," a tactic used by manufacturers to delay generic or biosimilar versions of their products from entering the market. The bill's sponsors, Cornyn, Blumenthal, Grassley, and Durbin, want us to believe they're fighting for lower drug prices and increased access to affordable medications.
**Key Provisions & Changes to Existing Law:** The bill amends the Federal Trade Commission Act to define "product hopping" as an unfair method of competition. It prohibits manufacturers from engaging in hard switches, where they withdraw or discontinue their original product to prevent generic or biosimilar versions from being approved. The bill also establishes a 180-day window for generic or biosimilar products to be marketed after the manufacturer receives notice of an abbreviated new drug application (ANDA) or biosimilar biological product license application.
**Affected Parties & Stakeholders:** The usual suspects are involved:
* Pharmaceutical manufacturers, who will do everything in their power to maintain their profit margins. * Generic and biosimilar manufacturers, who might actually benefit from this bill if it's enforced properly. * Patients, who will supposedly see lower prices and increased access to affordable medications (yeah, right). * Lobbyists, who are already salivating at the prospect of "educating" lawmakers on the importance of their clients' interests.
**Potential Impact & Implications:** This bill is a Band-Aid on a bullet wound. It might slow down product hopping, but it won't address the root causes of high drug prices and limited access to affordable medications. The real disease here is the corrupting influence of money in politics, which ensures that lawmakers prioritize their donors' interests over those of their constituents.
In reality, this bill will likely lead to:
* More loopholes and workarounds for manufacturers to exploit. * Increased lobbying efforts from pharmaceutical companies to water down or repeal the bill. * Minimal impact on actual drug prices, as manufacturers will find ways to maintain their profit margins through other means (e.g., price gouging, mergers and acquisitions).
In short, this bill is a token effort to address a complex problem. It's a PR stunt designed to make lawmakers look like they're doing something about the issue, while actually perpetuating the status quo. Wake me up when someone proposes real reform that tackles the underlying corruption and greed driving our healthcare system.
Sen. Cornyn, John [R-TX]
Congress 119 • 2024 Election Cycle
No PAC contributions found
No organization contributions found
No committee contributions found
This bill has 3 cosponsors. Below are their top campaign contributors.
ID: B001277
Top Contributors
20
ID: G000386
Top Contributors
23
ID: D000563
Top Contributors
23
Hub layout: Politicians in center, donors arranged by type in rings around them.
Showing 32 nodes and 34 connections
Total contributions: $34
Showing top 20 donors by contribution amount
Which industries are materially affected by specific provisions in this bill. 2 harmed.
Section 2(b)(1) prohibits product hopping by manufacturers of reference products or listed drugs, which includes branded pharmaceutical companies. The provision defines unfair methods of competition when a manufacturer engages in hard or soft switches to impede generic or biosimilar competition, directly targeting pharmaceutical industry practices.
Section 2(a)(2)-(3) defines biosimilar biological product and biosimilar biological product license application, and Section 2(b)(1) prohibits product hopping actions that impede competition from biosimilar biological products, affecting biotech firms that develop biosimilars.
For each industry this bill affects, here's what the sponsor (Sen. Cornyn, John [R-TX])received from donors associated with that industry during the 2022–present cycles. Donations are not proof of intent — they are a record of who funds the people writing the law.
This bill shows semantic similarity to the following sections of the Project 2025 policy document.AI-enhanced analysis provides detailed alignment ratings.
AI Analysis:
"The bill aligns with Project 2025's goal of increasing generic drug competition by preventing brand-name manufacturers from delaying generic entry through tactics like product hopping, which mirrors the policy's call to prohibit meritless citizen petitions and other delaying tactics."
— 456 — Mandate for Leadership: The Conservative Promise abortion providers and whether better prenatal physical, mental, and social care improves infant outcomes and decreases abortion rates, especially among those who are most vulnerable. The Ensuring Accurate and Complete Abortion Data Reporting Act of 20239 would amend title XIX of the Social Security Act and Public Health Service Act to improve the CDC’s abortion reporting mechanisms by requiring states, as a condition of federal Medicaid payments for family planning services, to report streamlined variables in a timely manner. The CDC should immediately end its collection of data on gender identity, which legitimizes the unscientific notion that men can become women (and vice versa) and encourages the phenomenon of ever-multiplying subjective identities. FOOD AND DRUG ADMINISTRATION (FDA) The FDA’s mission includes ensuring the safety and efficacy of drugs, biological products, and medical devices. Federal Laws That Shield Big Pharma from Competition. Because generics generally cost far less than brand-name drugs, consumers begin to save money as soon as a generic product comes on the market. The vast majority are very afford- able with 93 percent of generic products costing $20 or less. Savings would be even higher under proposals that prevent brand-name man- ufacturers from slowing down or impeding the entrance of generic products into the marketplace. Specifically, the FDA should prohibit pharmaceutical companies from purposely sitting on their legally available right to be the first to sell generic versions of their drugs. Additionally, Congress should create legal remedies for generic companies to obtain samples of brand-name products for their generic development efforts and should prohibit meritless “citizen petitions” submitted by manufacturers to delay approval of a generic competitor.10 Approval Process for Laboratory-Developed or Modified Medical Tests. Learning from the failed early COVID-19 testing experience, Congress and the FDA should focus on reforming laws and regulations governing medical tests, especially with respect to laboratory-developed tests. Commercial tests are developed with the intention of being widely marketed, distributed, and used, while laboratory-developed tests are created with the intention of being used solely within one laboratory. A test developed by a lab in accordance with the protocols developed by another lab (non-commercial sharing) currently constitutes a “new” laboratory-developed test because the lab in which it will be used is different from the initial developing lab. To encourage interlab- oratory collaboration and discourage duplicative test creation (and associated regulatory and logistical burdens), the FDA should introduce mechanisms through which laboratory-developed tests can easily be shared with other laboratories with- out the current regulatory burdens.11 — 457 — Department of Health and Human Services The “laboratory-developed tests” category currently encompasses a range of possible tests, many of which would be characterized more appropriately as “lab- oratory-modified tests” because they are not truly novel tests but rather modified versions of existing tests. To avoid stifling innovation and access to medical care, the applicable statutes and regulations should be revised to facilitate greater access to such modified tests.12 Finally, the FDA has long held that it has regulatory authority over such tests, while others have argued that they should be considered clinical services regulated by the Centers for Medicare and Medicaid Services (CMS). The FDA currently has regulatory authority over in vitro diagnostics, and under the Clinical Lab- oratory Improvement Amendments (CLIA),13 the CMS ensures that labs meet analytical validity standards for test methods. Congress, the FDA, and the CMS need to clarify and disentangle overlapping authorities over tests to eliminate regulatory confusion.14 Drug Shortages. The very thin profit margins and the regulatory burdens associated with generic drug manufacturing discourage inventory and capacity investments by manufacturers and contribute to drug shortages. HHS and the FDA should encourage more dependable generic drug manufacturing. The FDA should expand its current pass/fail approach to drug facility inspec- tions into a graded system that recognizes manufacturers that exceed minimum standards by investing in improving production reliability. The FDA should also add facility codes to drug packaging and construct a searchable database that cross-references product codes and facility codes. That would enable wholesalers and pharmacy benefit managers to identify and preference drugs manufactured at more reliable facilities, thus encouraging generic drug manufacturers to compete on reliability as well as on price. For its part, HHS should exempt multi-source generic drugs from requirements to pay rebates to Medicaid and other federally funded health programs, as those provisions penalize new investments in expanding manufacturing capacity when supply is unable to meet demand.15 Additionally, FDA and NIH should promote efficacy trials of new applications for generic drugs, which might include NIH fund- ing such trials or conducting its own. Abortion Pills. Abortion pills pose the single greatest threat to unborn chil- dren in a post-Roe world. The rate of chemical abortion in the U.S. has increased by more than 150 percent in the past decade; more than half of annual abortions in the U.S. are chemical rather than surgical. The abortion pill regimen is typically a two-part process. The first pill, mifepris- tone, causes the death of the unborn child by cutting off the hormone progesterone, which is required to sustain a pregnancy. The second pill, misoprostol, causes con- tractions to induce a delivery of the dead child and uterine contents, usually into a toilet at home. The abortion-pill regimen is currently approved for up to 70 days
AI Analysis:
"The bill targets pharmaceutical market competition by banning product hopping, while the Project 2025 agriculture section seeks to dismantle USDA‑mandated marketing orders and promote free‑market agricultural trade. Both share a broad goal of reducing government‑enabled cartels and enhancing competition, but they apply to different sectors, resulting in only weak thematic alignment."
— 306 — Mandate for Leadership: The Conservative Promise programs,104 and they focus on research and promotion of commodities such as beef and eggs. Marketing orders cover research and promotion, but also cover issues such as quality regulations and volume controls. The latter issue, volume controls, is a means to restrict supply, which drives up prices for consumers. Fortunately, there are few active volume controls.105 Marketing orders and checkoff programs are some of the most egregious pro- grams run by the USDA. They are, in effect, a tax—a means to compel speech—and government-blessed cartels. Instead of getting private cooperation, they are tools for industry actors to work with government to force cooperation. The next Administration should: l Reduce the number and scope of marketing orders and checkoff programs. The USDA should reject any new requests for marketing orders and checkoff programs to the extent authorized by law and eliminate existing programs when possible. While the programs work differently, there are often petition processes and other ways that make it difficult for affected parties to get rid of the marketing orders and checkoff programs,106 and the USDA itself may not even be required to honor requests to terminate a program.107 The USDA should make the process easier. Further, the USDA should reject any effort to bring back volume controls to limit supplies of commodities. l Work with Congress to eliminate marketing orders and checkoff programs. These programs should be eliminated, and if industry actors want to collaborate, they should do so through private means, not using the government to compel cooperation. l Promote legislation that would require regular votes. There should be regular voting for parties subject to checkoff programs and marketing orders. For example, the voting should occur at least every five years, to determine whether a marketing order or checkoff program should continue. The USDA should be required to honor the results of such a vote. Through regular voting, parties can demonstrate their support for a marketing order or checkoff program and ensure that those administering them will be held accountable. Focus on Trade Policy, Not Trade Promotion. The USDA’s Foreign Agri- cultural Service (FAS) covers numerous issues, including “trade policy,” which is a reference to removing trade barriers, among other things, to ensure an envi- ronment conducive to trade.108 It also covers trade promotion.109 This includes programs like the Market Access Program110 that subsidizes trade associations, — 307 — Department of Agriculture businesses, and other private entities to market and promote their products overseas. FAS should play a proactive and leading role to help open upmarkets for American farmers and ranchers. There are numerous barriers, such as sani- tary and phytosanitary measures, blocking American agricultural products from gaining access to foreign markets.111 However, FAS should not help businesses and industries promote their exports, something these businesses and industries can and should do on their own. The next Administration should: l Push legislation to repeal export promotion programs. The USDA should work with Congress to repeal market development programs like the Market Access Program and similar programs. Remove Obstacles for Agricultural Biotechnology. Innovation is critical to agricultural production and the ability to meet future food needs. The next Admin- istration should embrace innovation and technology, not hinder its use—especially because of scare tactics that ignore sound science. One of the key innovations in agriculture is genetic engineering. According to the USDA, “[C]urrently, over 90 percent of U.S. corn, upland cotton, and soybeans are produced using GE [genet- ically engineered] varieties.”112 Despite the importance of agricultural biotechnology, in 2016, Congress passed a federal mandate to label genetically engineered food.113 This legislation was argu- ably just a means to try to provide a negative connotation to GE food. There are other challenges as well for agricultural biotechnology. For example, Mexico plans to ban the importation of U.S. genetically modified yellow corn.114 The next Administration should: l Counter scare tactics and remove obstacles. The USDA should strongly counter scare tactics regarding agricultural biotechnology and adopt policies to remove unnecessary barriers to approvals and the adoption of biotechnology. l Repeal the federal labeling mandate. The USDA should work with Congress to repeal the federal labeling law, while maintaining federal preemption, and stress that voluntary labeling is allowed. l Use all tools available to remove improper trade barriers against agricultural biotechnology. The USDA should work closely with the Office of the United States Trade Representative to remove improper barriers imposed by other countries to block U.S. agricultural goods.
AI Analysis:
"The bill focuses on pharmaceutical competition by banning product hopping to lower drug prices, while Project 2025's HHS section emphasizes Medicare Advantage expansion, Part D reform, Medicaid restructuring, and repealing the Inflation Reduction Act's drug pricing provisions—there is minimal direct overlap in mechanisms or priorities."
— 465 — Department of Health and Human Services 1. Make Medicare Advantage the default enrollment option. 2. Give beneficiaries direct control of how they spend Medicare dollars. 3. Remove burdensome policies that micromanage MA plans. 4. Replace the complex formula-based payment model with a competitive bidding model. 5. Reconfigure the current risk adjustment model. 6. Remove restrictions on key benefits and services, including those related to prescription drugs, hospice care, and medical savings account plans.26 Legacy Medicare Reform. Legislation reforming legacy (non-MA) Medicare should: l Base payments on the health status of the patient or intensity of the service rather than where the patient happens to receive that service. l Replace the bureaucrat-driven fee-for-service system with value- based payments to empower patients to find the care that best serves their needs. l Codify price transparency regulations. l Restructure 340B drug subsidies27 toward beneficiaries rather than hospitals. l Repeal harmful health policies enacted under the Obama and Biden Administrations such as the Medicare Shared Savings Program28 and Inflation Reduction Act.29 Medicare Part D Reform. The Inflation Reduction Act (IRA) created a drug price negotiation program in Medicare that replaced the existing private-sector negotiations in Part D with government price controls for prescription drugs. These government price controls will limit access to medications and reduce patient access to new medication. This “negotiation” program should be repealed, and reforms in Part D that will have meaningful impact for seniors should be pursued. Other reforms should include eliminating the coverage gap in Part D, reducing the government share in — 466 — Mandate for Leadership: The Conservative Promise the catastrophic tier, and requiring manufacturers to bear a larger share. Until the IRA is repealed, an Administration that is required to implement it must do so in a way that is prudent with its authority, minimizing the harmful effects of the law’s policies and avoiding even worse unintended consequences.30 Medicaid. Over the past 45 years, Medicaid and the health safety net have evolved into a cumbersome, complicated, and unaffordable burden on nearly every state. The program is failing some of the most vulnerable patients; is a prime target for waste, fraud, and abuse; and is consuming more of state and federal budgets. The dramatic increase in Medicaid expenditures is due in large part to the ACA (Obamacare), which mandates that states must expand their Medicaid eligibility standards to include all individuals at or below 138 percent of the federal poverty level (FPL), and the public health emergency, which has prohibited states from performing basic eligibility reviews. The overlap of available benefits among the various health agencies has led to a complex, confusing system that is nearly impossible to navigate—even for recipients. Recipients are often faced with a “welfare cliff” of benefit losses as they earn above a certain amount, which is contrary to the fundamental purpose of empowering individuals to achieve economic independence. Benefits increasingly involve nonmedical services such as air conditioning and housing, many of which are already handled by departments other than HHS. Improper payments within Medicaid are higher than those of any other federal program. These payments are evidence of the inappropriateness of Medicaid’s expansion, which, stemming largely from public health emergency maintenance of effort (MOE) requirements and the Affordable Care Act, has crowded out the primary targets of these programs: those who are most in need. True health care reform cannot be accomplished in a bureaucratic silo or only through Medicaid and health safety net programs. Reform of the tax code is also essential to genuine, effective reform of our health care system. All components of the health care system should be part of the reform efforts, and it is imperative that the system be modified to assist states with their current programs. Therefore, the next Administration should: l Reform financing. Allow states to have a more flexible, accountable, predictable, transparent, and efficient financing mechanism to deliver medical services. This system should include a more balanced or blended match rate, block grants, aggregate caps, or per capita caps. Any financial system should be designed to encourage and incentivize innovation and the efficient delivery of health care services. Federal and state financial participation in the Medicaid program should be rational, predictable, and reasonable. It should also incentivize states to save money and improve the quality of health care.
Showing 3 of 5 policy matches
Policy matches are calculated using a hybrid approach: initial candidates are found using semantic similarity between bill summaries and Project 2025 policy text, then an AI model (Llama 3.1 70B) provides detailed alignment ratings and analysis. Ratings range from 1 (minimal alignment) to 5 (very strong alignment). This analysis does not imply direct causation or intent.