Washington, D.C. - Today, Rep. Carolyn B. Maloney, the Chairwoman of the Committee on Oversight and Reform, joined a bipartisan group of members and senators to introduce a legislative package that will enhance efforts to lower prescription drug costs by taking on anticompetitive practices employed by large pharmaceutical companies.
“I am proud to join my colleagues in introducing critical legislation that directly addresses the findings of the Oversight Committee’s sweeping investigation into the pricing practices of drug companies," Chairwoman Maloney said. “Our investigation found that brand name drug companies have engaged in blatantly anticompetitive strategies-like product hopping and pay for delay agreements-to extend their monopoly pricing in the United States. The bills announced today will significantly reform the system and help alleviate the financial burden of life-saving prescription drugs for the American people."
Chairwoman Maloney is an original cosponsor of the following bills:
* The Preserve Access to Affordable Generics and Biosimilars Act, introduced by Chairman Nadler (D-NY) and U.S. Senators Amy Klobuchar (D-MN) and Charles Grassley (R-IA). This bill prohibits pharmaceutical companies from entering into anticompetitive pay-for-delay agreements - an arrangement that allows a company to pay the manufacturer of a generic or biosimilar competitor to not bring their product to market. The Act makes it presumptively illegal for brands to enter into such agreements.
* The Affordable Prescriptions for Patients Through Promoting Competition Act, introduced by Chairman Cicilline (D-RI) and U.S. Senators Richard Blumenthal (D-CT) and Jon Cornyn (R-TX), prohibits “product hopping," an anticompetitive practice where pharmaceutical companies seek to extend their exclusivity on an expiring patent by switching doctors and patients from the old version of the drug to a new version. This practice allows drug manufacturers to artificially extend their monopolies and prevent generic drugs from entering the market, which keeps prescription drug costs high.
* The Stop Stalling Access to Affordable Medications Act, introduced by Congressman Jeffries (D-NY) and Senators Klobuchar and Grassley, will prohibit pharmaceutical companies from overwhelming the Food and Drug Administration (FDA) with meritless “citizen petitions" to block or delay generic competitors. The Act makes it presumptively unlawful for brands to submit sham petitions under certain circumstances and empowers the Federal Trade Commission (FTC) to prosecute violations.
Today, Chairwoman Maloney testified before the House Committee on the Judiciary Subcommittee on Antitrust, Commercial, and Administrative Law. During her testimony, she announced the Oversight Committee would hold a hearing on May 18, 2021, with AbbVie Inc. Chief Executive Officer Richard Gonzalez regarding its pricing practices related to its drug Humira-the highest grossing drug in the United States and the world-and related to its cancer drug Imbruvica, which is priced at over $180,000 for a year of treatment.
