Austin News

U.S. Senators John Cornyn, Richard Blumenthal, Chuck Grassley, and Dick Durbin have introduced the Drug Competition Enhancement Act aimed at reducing drug prices by promoting competition in the pharmaceutical market. The proposed legislation seeks to deter branded drug manufacturers from engaging in "product hopping," a tactic used to delay the entry of cheaper generic alternatives.

Senator Cornyn emphasized the importance of holding pharmaceutical companies accountable for practices that prioritize profit over patient health. “Companies who attempt to profit at the expense of Texans’ health must face consequences,” he stated. He believes this legislation will encourage competition and make medications more affordable.

Senator Blumenthal highlighted how some pharmaceutical companies manipulate rules for financial gain, leaving patients with high costs. “The Drug Competition Enhancement Act reigns in these monopolistic practices and facilitates competition and market entry,” he noted.

Senator Grassley expressed his commitment to lowering prescription drug costs as a priority in the Senate. “Our bill will bring much needed transparency to drug pricing by cracking down on product hopping,” he said.

According to Senator Durbin, anti-competitive tactics by Big Pharma often force Americans into difficult financial choices regarding their health care needs. “The bipartisan Drug Competition Enhancement Act would prevent pharmaceutical companies from using anti-competitive tactics to keep affordable medications out of reach for patients,” he remarked.

Product hopping involves switching patients from one branded product to another when patent protections are about to expire, thus avoiding competition with generics or biosimilars. This practice results in sustained high costs for drugs that are similar to older versions but not necessarily better.

The new bill aims to classify such actions as antitrust violations, subjecting offenders to enforcement by the Federal Trade Commission (FTC). It is expected that facilitating easier market entry for generics and biosimilars will drive down overall drug costs.