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SENATE 1040119th CongressPlaced on Senate Legislative Calendar under General Orders. Calendar No. 43.

Drug Competition Enhancement Act

Last Action
4/10/2025

Actions

  • 2025-04-10Placed on Senate Legislative Calendar under General Orders. Calendar No. 43.
  • 2025-04-10Committee on the Judiciary. Reported by Senator Grassley with an amendment. Without written report.
  • 2025-04-10Committee on the Judiciary. Reported by Senator Grassley with an amendment. Without written report.
  • 2025-04-03Committee on the Judiciary. Ordered to be reported with an amendment favorably.
  • 2025-03-13Read twice and referred to the Committee on the Judiciary.
  • 2025-03-13Introduced in Senate

CRS Summary

As of 2025-03-13 (00)

Drug Competition Enhancement Act

This bill prohibits product hopping by drug manufacturers and authorizes the Federal Trade Commission (FTC) to enforce this prohibition.

Generally, product hopping describes a situation where, when the patents on a reference drug (or biological product) expire, the manufacturer switches to a follow-on product that is covered by a later-expiring patent. Under this bill, a follow-on product is a modified version of the reference drug that has an indication (what the drug is used for) that is identical or substantively similar to an indication of the reference drug.

The bill establishes a presumption that product hopping has occurred when a reference drug manufacturer, after receiving notice that the Food and Drug Administration has received an application to market a competing generic (or biosimilar) version, takes certain actions such as withdrawing the reference drug from the market and selling a follow-on product.

A drug manufacturer may rebut these presumptions by demonstrating that its conduct was not intended to limit competition.

The bill makes product hopping an unfair method of competition and provides for enforcement by the FTC. If the FTC has reason to believe a manufacturer has violated or is about to violate this prohibition on product hopping, the FTC may institute an administrative proceeding or bring suit in federal court to stop the manufacturer’s action and seek equitable remedies, including disgorgement of unjust profits or paying restitution to those harmed. 

Cosponsors (3)

  • Richard Blumenthal (D-CT)
  • Chuck Grassley (R-IA)
  • Richard Durbin (D-IL)

Subjects

  • Administrative remedies
  • Civil actions and liability
  • Competition and antitrust
  • Consumer affairs
  • Drug safety, medical device, and laboratory regulation
  • Federal Trade Commission (FTC)
  • Health care costs and insurance
  • Inflation and prices
  • Intellectual property
  • Judicial review and appeals
  • Manufacturing
  • Prescription drugs
Read on Congress.gov

Sourced from Congress.gov (public domain).

This is legal information, not legal advice. Laws vary by jurisdiction and change frequently. Always verify current law with official sources and consult a licensed attorney in your jurisdiction for advice on your specific situation.