Bill would outlaw brand-generic deals that delay cheaper drugs

What does this do?

This bill bans "pay-for-delay" deals in which brand-name drug companies pay generic or biosimilar makers to delay selling cheaper versions of a drug. Such deals would be presumed anti-competitive unless companies prove the payment was for a legitimate service or benefits competition overall. Normal settlements, like early market entry or covering legal costs, remain allowed.

Who does it affect?

The bill directly affects pharmaceutical and biotech companies involved in patent litigation and settlements. It also affects the FTC, which would enforce the new rule, and indirectly consumers, insurers, and government health programs.

Why does it matter?

By restricting these settlements, the bill could change how brand and generic companies resolve patent disputes and speed up generic drug availability. It also adds new reporting and certification requirements for tracking settlement agreements.

What does it cost, and who pays?

• FTC can sue violators
• Fines up to 3x payment value