4:38 PM
 | 
Jan 10, 2019
 |  BC Extra  |  Politics & Policy

Klobuchar, Grassley bill would ban 'pay-for-delay' deals

Sens. Amy Klobuchar (D-Minn.) and Chuck Grassley (R-Iowa) reintroduced legislation Thursday to toughen laws against "pay-for-delay" deals, in which drug companies seek to block competition by paying their generic competitors.

The bipartisan Preserve Access to Affordable Generics and Biosimilars Act, first introduced by Klobuchar and Grassley in December under the previous Congress, is in line with the Trump administration’s initiatives to increase competition.

In 2018, President Donald Trump signed into law the Patient Right to Know Drug Prices Act, which included a provision that required patent settlements for biologics and biosimilars be submitted to the U.S. Department of Justice and Federal Trade Commission (see "Trump Signs Law Intended to Deter 'Pay-For-Delay' Deals for Biosimilars").

The new bill would prohibit branded drug companies from compensating generic, interchangeable biologic or biosimilar companies to delay market entry of competing products.

On Wednesday, Grassley and Klobuchar introduced a separate bill that seeks to allow importation of drugs from approved pharmacies in Canada (see "Bipartisan Bill Would Allow Drug Imports from Canada").

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