The bill
Preserve Access to Affordable Generics and Biosimilars Act
S. 1096, 119th Congress โ read as touching Pharmaceuticals.
Sponsored by
Sen. Klobuchar, Amy [D-MN]
ID: K000367
Follow the money
The bill
S. 1096, 119th Congress โ read as touching Pharmaceuticals.
The sponsor
Every bill has someone who introduced it. That name is where the paper trail starts.
The money
25 itemised contributions to this sponsor, pulled from FEC filings.
Track this bill's progress through the legislative process
Latest Action
Placed on Senate Legislative Calendar under General Orders. Calendar No. 46.
April 9, 2025
๐ 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 bill from the esteemed members of Congress, no doubt crafted with the utmost sincerity and not at all driven by the interests of their pharmaceutical industry donors. Let's take a look at this masterpiece.
**Main Purpose & Objectives**
The Preserve Access to Affordable Generics and Biosimilars Act (S 1096) claims to aim at promoting competition in the pharmaceutical market by prohibiting "reverse payment" settlement agreements between brand name drug companies and generic or biosimilar manufacturers. These agreements allegedly delay the entry of affordable generics and biosimilars into the market, thereby harming consumers.
**Key Provisions & Changes to Existing Law**
The bill amends the Federal Trade Commission Act (FTCA) by adding a new section that prohibits parties from entering into agreements that resolve patent claims in connection with the sale of a drug product or biological product if such agreements have anticompetitive effects. The bill also establishes a presumption that an agreement has anticompetitive effects if it involves the transfer of value, including exclusive licenses, to generic or biosimilar manufacturers.
**Affected Parties & Stakeholders**
The usual suspects are involved here: brand name drug companies, generic and biosimilar manufacturers, consumers, and the Federal Trade Commission (FTC). Pharmaceutical industry lobbyists must be thrilled to see their interests being "protected" by this bill.
**Potential Impact & Implications**
Let's get real for a moment. This bill is not about promoting competition or helping consumers; it's about maintaining the status quo of pharmaceutical industry profits. By prohibiting "reverse payment" agreements, Congress is essentially allowing brand name companies to maintain their monopolies on expensive drugs, while generic and biosimilar manufacturers are left to fight over scraps.
The real impact will be felt by consumers, who will continue to pay exorbitant prices for prescription medications. The FTC will also have its hands tied in enforcing antitrust laws, as the bill's provisions will create a new layer of bureaucratic red tape.
In conclusion, this bill is a masterclass in legislative theater, designed to appease pharmaceutical industry donors while pretending to care about consumers. It's a cynical exercise in regulatory capture, and we should all be outraged by the sheer audacity of it.
Diagnosis: Terminal case of regulatory capture, with symptoms including excessive greed, corruption, and a complete disregard for the public interest. Prognosis: Poor, as this bill will only serve to further entrench the pharmaceutical industry's grip on our healthcare system.
Sen. Klobuchar, Amy [D-MN]
Congress 119 โข 2024 Election Cycle
No PAC contributions found
No committee contributions found
This bill has 8 cosponsors. Below are their top campaign contributors.
ID: G000386
Top Contributors
10
ID: D000563
Top Contributors
10
ID: C001096
Top Contributors
10
ID: B001277
Top Contributors
10
ID: E000295
Top Contributors
10
ID: W000800
Top Contributors
10
ID: K000377
Top Contributors
10
ID: B001288
Top Contributors
10
Hub layout: Politicians in center, donors arranged by type in rings around them.
Showing 63 nodes and 40 connections (62 secondary connections hidden)
Total contributions: $152,189
Showing top 15 donors by contribution amount
Which industries are materially affected by specific provisions in this bill. 2 helped, 2 harmed.
Section 3(a)(1) prohibits brand name drug companies from compensating generic drug companies to delay generic entry, and Section 3(a)(1) also prohibits biological product manufacturers from compensating biosimilar and interchangeable companies to delay biosimilar entry. This imposes a clear cost on pharmaceutical companies that engage in reverse payment settlement agreements, which are a common practice in the industry to delay competition.
By prohibiting reverse payment settlements that delay generic and biosimilar entry, the bill increases competition and lowers drug prices, which reduces costs for hospitals and health systems that purchase pharmaceuticals. This is supported by findings in Sec. 2(a)(2)-(4) noting prescription drugs are 11% of national health spending and generics cost 80-85% less than brand drugs.
Lower drug prices from increased generic/biosimilar competition reduce prescription drug costs, which are a major component of health insurance expenditures. This is implied in Sec. 2(a)(5) noting federal dollars account for over 40% of $449.7B spent annually on retail prescription drugs, indicating significant impact on payers including insurers.
The bill prohibits biological product manufacturers from compensating biosimilar companies to delay entry, which could reduce profits for biotech firms that rely on biological product sales and may use such settlements to protect monopolies. This is directly addressed in Sec. 2(a)(7)-(9) and Sec. 3(a)(1) which extend the prohibition to biological products and biosimilars.
For each industry this bill affects, here's what the sponsor (Sen. Klobuchar, Amy [D-MN])received from donors associated with that industry during the 2022โpresent cycles. Donations are not proof of intent โ they are a record of who funds the people writing the law.