,,ii #aaf? ,,congress #a/ ,session ,s4 #ajb ,,9 ,,! ,,s5ate ,,( ,,! ,,unit$ ,,/ates ,janu>y #aj1 #bjai,mr4 ,s&]s 7= himself1 ,mr4 ,book]1 ,mr4 ,blum5?al1 ,mrs4 ,gillibr&1 ,ms4 ,h>ris1 & ,ms4 ,w>r57 introduc$ ! foll[+ bill2 :i* 0 read twice & ref]r$ to ! ,committee on ,heal?1 ,education1 ,labor1 & ,p5sions ,a ,,bill ,to significantly l[] prescription drug prices = pati5ts 9 ! ,unit$ ,/ates by end+ gov]nm5t-grant$ monopolies = manufactur]s :o *>ge drug prices t are high] ?an ! m$ian prices at :i* ! drugs are available 9 o!r c\ntries4 #a4 ,%ort title ,?is ,act may be cit$ z ! ,prescription ,drug ,price ,relief ,act ( #bjai4 #b4 ,id5tification ( excessively pric$ drugs 7a7 ,9 g5]al ,! ,secret>y1 n lat] ?an #a ye> aft] ! date ( enactm5t ( ?is ,act1 %all e/abli% a process to conduct a review ( all br& "n drugs1 n less frequ5tly ?an once p] cal5d> ye>1 "u :i* ! ,secret>y det]m9es "u subsection 7b7 :e!r ! price ( ea* su* drug is excessive4 7b7 ,excessive price det]m9ations 7#a7 ,int]national ref]5ce price 7,a7 ,9 g5]al ,! ,secret>y %all det]m9e t any br& "n drug = :i* ! dome/ic av]age manufactur+ price exce$s ! m$ian price *>g$ = su* drug 9 ! #e ref]5ce c\ntries to h an excessive price4 ,9 assess+ ! ext5t to :i* ! price is excessive1 ! ,secret>y %all consid] ! factors describ$ 9 p>agraph 7#b74 7,b7 ,ref]5ce ,c\ntries ,9 ?is ,act1 ! t]m ref]5ce c\ntries means ,canada1 ! ,unit$ ,k+dom1 ,g]many1 ,france1 & ,japan4 7,c7 ,requirem5t ) respect to drugs = :i* c]ta9 ref]5ce c\ntry in=mation is n available ,! ,secret>y %all make a det]m9ation "u p>agraph 7#a7 = e br& "n drug = :i* pric+ in=mation is available = at lea/ #c ( ! #e ref]5ce c\ntries4 7#b7 ,det]m9ations bas$ on o!r factors ,) respect to any br& "n drug t is n det]m9$ to h an excessive price by op]ation ( p>agraph 7#a7 7includ+ any drug = :i* !re is insuffici5t data to make su* a det]m9ation "u su* p>agraph71 ! ,secret>y %all det]m9e t su* drug has an excessive price if ! price ( ! drug is high] ?an reasonable tak+ into acc\nt ! foll[+ factors3 7,a7 ,! size ( ! affect$ pati5t population4 7,b7 ,! value ( ! drug to pati5ts1 includ+ ! impact ( ! price on access to ! drug & ! relation%ip ( ! price ( ! drug to its !rapeutic heal? b5efits4 7,c7 ,! risk adju/$ value ( ,f$]al ,gov]nm5t subsidies & inve/m5ts relat$ to ! drug4 7,d7 ,! co/s associat$ ) developm5t ( ! drug4 7,e7 ,:e!r ! drug provid$ a significant improvem5t 9 heal? outcomes1 comp>$ to o!r !rapies available at ! "t ( its approval4 7,f7 ,! cumulative global rev5ues g5]at$ by ! drug4 7,g7 ,:e!r ! dome/ic av]age manufactur] price ( ! drug increas$ dur+ any annual qu>t] by a p]c5tage t is m ?an ! p]c5tage increase 9 ! consum] price index = all urban consum]s = ! respective annual qu>t]4 7,h7 ,o!r factors ! ,secret>y det]m9es appropriate4 7c7 ,petition = det]m9ation 7#a7 ,9 g5]al ,any p]son may petition ! ,secret>y1 9 accordance ) section #eec7;e7 ( title #e1 ,unit$ ,/ates ,code1 to make an excessive drug price det]m9ation = an applicable drug "u subsection 7b77#b74 ,n lat] ?an #ij days aft] ! date ( receipt ( su* a petition1 subject to p>agraph 7#b71 ! ,secret>y %all-- 7,a7 make a det]m9ation "u subsection 7b77#b7 reg>d+ su* drug2 or 7,b7 7i7 decl9e to make su* a det]m9ation2 & 7ii7 make public ! reasons :y ! ,secret>y has decl9$ to make su* a det]m9ation4 7#b7 ,exception ,! ,secret>y %all n make a det]m9ation "u subsection 7b77#b7 = a drug 9 response to a petition "u ?is section m frequ5tly ?an once p] cal5d> ye>4 7#c7 ,public availability ,! ,secret>y %all make any petitions submitt$ "u ?is subsection1 toge!r ) any docum5tation relat$ to ! petitions & ! ,secret>y's det]m9ations on su* petitions & rationale = su* det]m9ations1 publicly available1 includ+ by po/+ su* in=mation on ! database "u section #e4 #c4 ,end+ gov]nm5t-grant$ monopolies = excessively pric$ drugs 7a7 ,excessive drug price au?ority ,) respect to any br& "n drug1 if ! ,secret>y det]m9es "u section #b t ! price ( ! drug is excessive1 ! ,secret>y-- 7#a7 %all waive or void any gov]nm5t-grant$ exclusivities ) respect to su* drug1 effective on ! date t ! excessive price det]m9ation "u section #b is made = su* drug2 & 7#b7 %all grant op51 non-exclusive lic5ses all[+ any p]son to make1 use1 (f] to sell or sell1 or import into ! ,unit$ ,/ates su* drug1 & to rely ^u ! regulatory te/ data ( su* drug1 9 accordance ) section #d4 7b7 ,exp$it$ review ,! ,secret>y %all prioritize ! review (1 & act )9 #h mon?s ( ! date ( ! submission ( a g5]ic drug application or a biosimil> biological product application if su* application ref]5ces a drug lic5s$ "u subsection 7a77#b74 7c7 ,civil actions ,if ! ,secret>y det]m9es t ! manufactur] ( an excessively pric$ drug 7z det]m9$ "u section #b7;a77 has increas$ ! price ( su* drug dur+ ! p]iod beg9n+ on ! date on :i* su* price det]m9ation is made & end+ on ! date on :i* an entity beg9s manufactur+ ! drug "u an op51 non-exclusive lic5se "u subsection 7a77#b71 ! ,secret>y may file a civil action 9 ! ,unit$ ,/ates di/rict c\rt = ! di/rict 9 :i* ! manufactur] is locat$1 or 9 ! ,unit$ ,/ates di/rict c\rt = ! ,di/rict ( ,columbia1 to recov] damages 9 an am\nt equal to n less ?an ! total am\nt ( rev5ue d]iv$ by ! manufactur] z a result ( any su* price increase dur+ su* p]iod4 ,9 actions br\ght "u ?is subsection1 ! di/rict c\rts %all h jurisdiction to grant all appropriate relief includ+1 b n limit$ to1 injunctive relief & comp5satory damages4 #d4 ,excessive drug price lic5se 7a7 ,reasonable royalty 7#a7 ,9 g5]al ,an entity accept+ an op51 non-exclusive lic5se "u section #c7;a77#b7 %all pay a reasonable royalty to ! hold] ( a pat5t t claims ! drug or t claims a use ( ! drug or to ! hold] ( an application approv$ "u subsection #eje7;c7 ( ! ,f$]al ,food1 ,drug1 & ,cosmetic ,act or section #cea7;a7 ( ! ,public ,heal? ,s]vice ,act = :i* any gov]nm5t-grant$ exclusivity ) respect to ! drug 0 t]m9at$ "u section #e7;a77#a74 7#b7 ,royalty rate ,su* royalty rate %all be-- 7,a7 a p]c5tage ( sales1 :]e ! p]c5tage rate is no high] ?an ! av]age royalty rate e/imat$ f ! data provid$ by ! ,int]nal ,rev5ue ,s]vice = ph>maceutical manufactur] ,f$]al income tax returns2 or 7,b7 an am\nt z det]m9$ by ! ,secret>y1 tak+ into acc\nt-- 7i7 ! value ( ! drug to pati5ts2 7ii7 ! size ( ! affect$ pati5t population2 7iii7 ! risk adju/$ value ( ! ,f$]al ,gov]nm5t subsidies & inve/m5ts relat$ to ! drug2 7iv7 :e!r ! drug provid$ a significant improvem5t 9 heal? outcomes1 comp>$ to o!r !rapies available at ! "t ( ! approval2 7v7 ! ext5t to :i* ! br& "n drug manufactur] has recov]$ risk adju/$ inve/m5ts relat$ to ! drug1 includ+ ! inve/m5ts relat$ to ! inv5tion1 regulatory te/ data & any o!r relevant rese>* & developm5t co/s2 & 7vi7 any o!r in=mation ! ,secret>y det]m9es appropriate4 7b7 ,requirem5ts 7#a7 ,9 g5]al ,a royalty rate "u subsection 7a7 %all be consi/5t ) mak+ drugs available to pur*as]s1 includ+ ,f$]al1 ,/ate1 local1 & nongov]nm5tal pur*as]s & individuals1 at prices t are af=dable & reasonable4 ,"u no condition %all a royalty be set at a rate t w\ld cause a product = :i* an op51 non-exclusive lic5se 0 issu$ "u section #c to be sold at an excessive price1 z det]m9$ "u section #b4 7#b7 ,multiple affect$ p>ties ,9 ! case t !re is "o or m hold]s or inve/ors 9 ! pat5t$ inv5tions relat$ to ! drug 9 addition to ! br& "n manufactur]1 ! royalty rate %all be divid$ among ! hold]s or inve/ors 7includ+ su* manufactur]7 9 a mann] agre$ ^u by ! manufactur] & o!r hold]s or inve/ors1 or1 9 ! abs5ce ( su* an agreem5t1 9 a mann] ! ,secret>y det]m9es to be appropriate4 7#c7 ,price ,an entity accept+ an op51 non-exclusive lic5se "u section #c7;a77#b7 %all sell ! drug at a price n high] ?an ! excessive price det]m9$ = t drug "u section #b7;b74 #e4 ,public excessive drug price database 7a7 ,excessive drug price database 7#a7 ,9 g5]al ,! ,secret>y %all e/abli% & ma9ta9 a compreh5sive1 up-to-date database ( br& "n drugs & ! excessive price det]m9ations = su* drugs "u section #b4 7#b7 ,cont5ts ,! database %all include1 at a m9imum1 = ea* br& "n drug1 = ! applicable cal5d> ye>-- 7,a7 ! "n ( ! drug2 7,b7 ! manufactur]2 7,c7 :e!r ! drug 0 det]m9$ "u section #b7;b7 to h an excessive price2 7,d7 ! numb] ( petitions ! ,secret>y receiv$ "u section #b7;c7 to make an excessive price det]m9ation = ! drug1 toge!r ) ! in=mation describ$ 9 section #b7;c77#c72 7,e7 ! numb] ( op51 non-exclusive lic5ses ! ,secret>y has grant$ "u section #c7;a77#b7 = g5]ic drug or biosimil> biological product v]sions ( ! drug2 & 7,f7 ! numb] ( applications "u subsection 7b77#b7 or 7j7 ( section #eje ( ! ,f$]al ,food1 ,drug1 & ,cosmetic ,act or "u section #cea7k7 ( ! ,public ,heal? ,s]vice ,act submitt$ to ! ,secret>y1 pursuant to su* a lic5se grant$ "u section #c7;a77#b71 & ! numb] ( su* applications t h be5 approv$4 7#c7 ,c]ta9 det]m9ations ,) respect to a det]m9ation made "u section #b7;b77#a71 ! ,secret>y %all publi% on ! database su* det]m9ation 9 accordance ) p>agraph 7#a7 )9 #cj days ( receiv+ dome/ic & int]national pric+ in=mation f manufactur]s "u section #f4 7b7 ,annual reports to ,congress ,n lat] ?an #fj days aft] ! fir/ excessive price review "u section #b is complete1 & annually !reaft]1 ! ,secret>y %all submit to ,congress a report describ+ ! excessive drug price review = ! prec$+ ye>4 ,! report %all conta9 summ>y data reg>d+-- 7#a7 ! total numb] ( drugs t 7 review$2 7#b7 ! total numb] ( drugs det]m9$ to be excessively pric$ "u ea* ( p>agraphs 7#a7 & 7#b7 ( section #b7;b71 & ! "n & manufactur] ( ea* su* drug2 7#c7 ! total numb] ( drugs det]m9$ to be excessively pric$1 li/$ by manufactur]2 7#d7 ! ext5t to :i* ! prices ( ! drugs id5tifi$ "u section #b 7 high] ?an reasonable1 on av]age2 7#e7 ! total numb] ( drugs = :i* an op5-non-exclusive lic5se has be5 grant$ "u section #c7;a77#b72 7#f7 ! total numb] ( g5]ic drug or biosimil> biological product applications receiv$ & approv$ t ref]5ce a drug s lic5s$2 7#g7 ! m$ian approval "t = g5]ic drug or biosimil> biological product applications t ref]5ce a drug s lic5s$2 7#h7 ! total numb] ( petitions ! ,secret>y receiv$ "u section #b7;c7 to make excessive price det]m9ations = drugs2 7#i7 a li/ ( any manufactur]s :o fail$ to report in=mation z requir$ "u section #f2 & 7#aj7 o!r appropriate in=mation1 z ! ,secret>y det]m9es or z ,congress reque/s4 7c7 ,public availability ,! ,secret>y %all make ! in=mation 9 ! database describ$ 9 subsection 7a7 & ! report 9 subsection 7b7 publicly available1 includ+ on ! int]net website ( ! ,food & ,drug ,adm9i/ration1 9 a mann] t is easy to f9d & und]/&4 #f4 ,drug manufactur] report+ 7a7 ,9 g5]al ,ea* manufactur] %all submit to ! ,secret>y1 9 su* =mat z ! ,secret>y may require1 an annual report t includes ! foll[+ in=mation = ea* br& "n drug ( ! manufactur]1 ) respect to ! previ\s cal5d> ye>3 7#a7 ,! av]age manufactur] price ( ! drug 9 ! ,unit$ ,/ates & 9 ! ref]5ce c\ntries1 = ! entire ye>1 & brok5 d[n = ea* qu>t] ( ! ye>4 7#b7 ,! :olesale acquisition co/ ( ! drug 9 ! ,unit$ ,/ates & 9 ! ref]5ce c\ntries1 = ! entire ye>1 & brok5 d[n = ea* qu>t] ( ! ye>4 7#c7 ,cumulative global rev5ues g5]at$ by ! drug4 7#d7 ,annual net sales rev5ue g5]at$ by ! drug 9 ! ,unit$ ,/ates & 9 ! ref]5ce c\ntries1 = ! entire ye>1 & brok5 d[n = ea* qu>t] ( ! ye>4 7#e7 ,total exp5ditures on dome/ic & =eign drug rese>* & developm5t relat$ to ! drug1 itemiz$ by-- 7,a7 basic & precl9ical rese>*2 7,b7 cl9ical rese>*1 report$ sep>ately = ea* cl9ical trial2 7,c7 developm5t ( alt]native dosage =ms & /r5g?s = ! drug molecule or comb9ations1 includ+ ! molecule2 7,d7 o!r drug developm5t activities1 su* z noncl9ical laboratory /udies & record & report ma9t5ance2 7,e7 pursu+ new or exp&$ indications = su* drug ?r\gh supplem5tal applications "u section #eje ( ! ,f$]al ,food1 ,drug1 & ,cosmetic ,act2 & 7,f7 c>ry+ out po/m>ket requirem5ts relat$ to su* drug1 includ+ "u section #eje7o77#c7 ( ! ,f$]al ,food1 ,drug1 & ,cosmetic ,act4 7#f7 ,total exp5ditures on dome/ic & =eign m>ket+ & adv]tis+ relat$ to ! drug4 7#g7 ,inve/m5ts 9 human cl9ical trials relat$ to ! drug1 by ea* trial & ea* ye>1 includ+ grants1 rese>* contracts1 tax cr$its or d$uctions1 & reimbursem5ts f public or private heal? plans or insurance1 & any o!r public sector subsidies or inc5tives1 su* z ! fair m>ket value or priority review v\*]s or o!r consid]ations4 7#h7 ,! e/imat$ size ( ! affect$ pati5t population4 7#i7 ,additional in=mation ! manufactur] *ooses to provide relat$ to drug pric+ decisions1 su* z in=mation relat$ to ! me?odology us$ to set ! price ( ! drug4 7#aj7 ,additional in=mation z ! ,secret>y det]m9es necess>y to c>ry out ?is ,act1 includ+ in=mation = previ\s ye>s4 7b7 ,report due date ,applicable manufactur]s %all submit ! reports describ$ 9 subsection 7a7 n lat] ?an ,janu>y #ae ( ! ye> foll[+ ! date ( enactm5t ( ?is ,act1 & ( ea* ye> !reaft]4 7c7 ,p5alty = noncompliance 7#a7 ,9 g5]al ,any manufactur] t fails to submit in=mation = a drug z requir$ by ?is section on a timely basis or t kn[+ly provides false in=mation %all be liable = a civil monet>y p5alty1 z det]m9$ by ! ,secret>y "u p>agraph 7#b71 9 addition to any o!r p5alty "u o!r applicable provisions ( law4 7#b7 ,am\nt ( p5alty ,! am\nt ( a civil p5alty "u p>agraph 7#a7 %all be equal to ! product (-- 7,a7 an am\nt1 z det]m9$ appropriate by ! ,secret>y1 :i* is-- 7i7 n less ?an #j4e p]c5t ( ! gross rev5ues f sales = ! previ\s cal5d> ye> ( ! drug = :i* ! in=mation 0 n submitt$2 & 7ii7 n great] ?an #a p]c5t ( ! gross rev5ues f sales = ! previ\s cal5d> ye> ( su* drug2 & 7,b7 ! numb] ( days 9 ! p]iod betwe5-- 7i7 ! report due date "u subsection 7b72 & 7ii7 ! date on :i* ! ,secret>y receives ! in=mation requir$ to be report$ by ! manufactur] "u ?is section4 7#c7 ,use ( civil p5alty ,! ,secret>y %all collect ! civil p5alties "u ?is subsection & %all use su* funds to support competitive rese>* grant programs ( ! ,national ,in/itutes ( ,heal?4 #g4 ,prohibition ( anticompetitive behavior ,no manufactur] may engage 9 anticompetitive behavior violat+ section #e7;a7 ( ! ,f$]al ,trade ,commission ,act 7#ae ,u4,s4,c4 #de7;a77 ) ano!r manufactur] t may int]f]e ) ! issuance & implem5tation ( op51 non-exclusive lic5ses "u ?is ,act or o!rwise run contr>y to ! public int]e/ 9 ! availability ( af=dable prescription drugs4 #h4 ,def9itions ,= ! purposes ( ?is ,act3 7#a7 ,av]age manufactur] price 7,a7 ,9 g5]al ,! t]m av]age manufactur] price1 ) respect to a drug1 subject to subp>agraph 7,b71 has ! mean+ giv5 su* t]m 9 section #aibg7k77#a7 ( ! ,social ,security ,act 7#db ,u4,s4,c4 #acifr-#h7k77#a772 or ) respect to a drug = :i* !re is no av]age manufactur] price z s def9$1 su* t]m %all mean ! :olesale acquisition co/ 7z def9$ 9 section #ahdg;,a7c77#f77;,b7 ( ! ,social ,security ,act 7#db ,u4,s4,c4 #aciew-#c;a7c77#f77;,b77 ( ! drug4 7,b7 ,application to ref]5ce c\ntries ,) respect to ref]5ce c\ntries1 ! t]m av]age manufactur] price1 z def9$ 9 subp>agraph 7,a71 %all be det]m9$ bas$ on ! price ( ! drug 9 ! applicable ref]5ce c\ntry4 7#b7 ,biosimil> biological product ,! t]m biosimil> biological product means a biological product lic5s$ pursuant to an application "u section #cea7k7 ( ! ,public ,heal? ,s]vice ,act 7#db ,u4,s4,c4 #bfb7k774 7#c7 ,br& "n drug ,! t]m br& "n drug means a drug t is-- 7,a7 approv$ "u section #eje7;c7 ( ! ,f$]al ,food1 ,drug1 & ,cosmetic ,act 7#ba ,u4,s4,c4 #cee7;c77 or a biological product lic5s$ "u section #cea7;a7 ( ! ,public ,heal? ,s]vice ,act 7#db ,u4,s4,c4 #bfb7;a772 7,b7 subject to section #ejc7;b77#a7 ( ! ,f$]al ,food1 ,drug1 & ,cosmetic ,act 7#ba ,u4,s4,c4 #cec7;b77#a772 & 7,c7 claim$ 9 a pat5t or ! use ( :i* is claim$ 9 a pat5t4 7#d7 ,g5]ic drug ,! t]m g5]ic drug means a drug approv$ pursuant to an application "u section 7b77#b7 or 7j7 ( ! ,f$]al ,food1 ,drug1 & ,cosmetic ,act 7#ba ,u4,s4,c4 #cee74 7#e7 ,gov]nm5t-grant$ exclusivity ,! t]m gov]nm5t-grant$ exclusivity means prohibitions on ! submission or approval ( drug applications grant$ "u any ( ! foll[+3 7,a7 ,clauses 7ii7 ?r\gh 7v7 ( section #eje7;c77#c77;,e7 ( ! ,f$]al ,food1 ,drug1 & ,cosmetic ,act 7#ba ,u4,s4,c4 #cee7;c77#c77;,e774 7,b7 ,section #eje7;j77#e77;,b77iv7 ( ! ,f$]al ,food1 ,drug1 & ,cosmetic ,act 7#ba ,u4,s4,c4 #cee7;j77#e77;,b77iv77 or clause 7ii71 7iii71 or 7iv7 ( section #eje7;j77#e77;,f7 ( su* ,act4 7,c7 ,section #eje;,a ( ! ,f$]al ,food1 ,drug1 & ,cosmetic ,act 7#ba ,u4,s4,c4 #cee;a74 7,d7 ,section #eje;,e ( ! ,f$]al ,food1 ,drug1 & ,cosmetic ,act 7#ba ,u4,s4,c4 #cee;f74 7,e7 ,section #ebg ( ! ,f$]al ,food1 ,drug1 & ,cosmetic ,act 7#ba ,u4,s4,c4 #cfj;cc74 7,f7 ,section #cea7k77#g7 ( ! ,public ,heal? ,s]vice ,act 7#db ,u4,s4,c4 #bfb7k77#g774 7,g7 ,any o!r provision ( law t provides = exclusivity 7or ext5sion ( exclusivity7 ) respect to a drug4 7#f7 ,manufactur] ,! t]m manufactur] means ! hold] ( an application approv$ "u section #eje ( ! ,f$]al ,food1 ,drug1 & ,cosmetic ,act 7#ba ,u4,s4,c4 #cee7 or ( a lic5se issu$ "u section #cea ( ! ,public ,heal? ,s]vice ,act 7#db ,u4,s4,c4 #bfb74 7#g7 ,op51 non-exclusive lic5se ,! t]m op51 non-exclusive lic5se means a lic5se t au?orizes any p]son to use a pat5t held by a manufactur] t claims a br& "n drug or a use ( a br& "n drug or rely ^u regulatory te/ data = su* drug1 includ+ pat5ts held 9 common by ! manufactur] & o!r entities1 ne$$ to produce1 manufacture1 import1 export1 di/ribute1 (f] 9 liquidation1 sell1 buy1 or use su* br& "n drug4 7#h7 ,secret>y ,! t]m ,secret>y means ! ,secret>y ( ,heal? & ,human ,s]vices4