US Federal 2025-2026 Regular Session

US Federal Senate Bill SB1818

Introduced
 
Introduced
5/20/25  

Caption

Prescription Drug Price Relief Act of 2025

Summary

The Prescription Drug Price Relief Act of 2025 would create a federal process for identifying brand-name drugs with “excessive” prices and then use that finding to break or limit the drug’s market exclusivity. The Secretary of Health and Human Services would review brand-name drugs at least annually and determine whether a drug is excessively priced by comparing U.S. pricing to the median price in five reference countries—Canada, the United Kingdom, Germany, France, and Japan—or, where needed, by weighing a broader set of factors such as patient population, therapeutic value, development costs, global revenues, and price increases relative to inflation. If a drug is found to have an excessive price, the bill directs the Secretary to waive or void government-granted exclusivities and issue open, non-exclusive licenses so that other manufacturers can make, use, sell, or import the drug and rely on the original regulatory test data. It also requires expedited review of generic or biosimilar applications tied to those licensed drugs and authorizes civil actions against manufacturers that raise prices after an excessive-price determination. The bill further establishes a royalty framework to compensate patent holders and other rights holders, while requiring that resulting products be sold below the excessive-price threshold. The bill would also impose substantial reporting and transparency obligations on drug manufacturers. Companies would have to submit annual reports detailing U.S. and foreign prices, revenues, research and development spending, marketing costs, clinical-trial investments, patient population estimates, and other pricing-related information. The Secretary would maintain a public database of excessive-price determinations, petitions, licenses granted, and application outcomes, and would report annually to Congress on the program’s implementation. Manufacturers that fail to report or provide false information could face civil monetary penalties, with collected penalties directed to NIH research grants. In terms of legal impact, the bill would significantly expand federal authority over prescription drug pricing and would alter the practical effect of patent and exclusivity protections for certain brand-name drugs. It would interact with the Federal Food, Drug, and Cosmetic Act, the Public Health Service Act, and federal patent-related exclusivities by creating a mechanism to terminate or bypass them when prices are deemed excessive. The bill would also create new obligations for HHS, FDA-related review processes, and pharmaceutical manufacturers, while potentially affecting generic and biosimilar competition, royalty payments, and enforcement actions. The available context shows no recorded committee debate or votes, so there is no documented opposition or support in the provided materials. Based on the bill’s structure, the likely policy sentiment is strongly pro-consumer and pro-lower drug prices, with an emphasis on transparency and competition. The main points of contention would likely be the use of international reference pricing, the federal government’s power to void exclusivity and open patented drugs to competition, the adequacy of royalty compensation, and the potential effects on pharmaceutical innovation and investment.

Impact

The bill would create a new federal framework for determining when a brand-name drug is priced excessively and would authorize HHS to terminate government-granted exclusivities and issue open, non-exclusive licenses for those drugs. It would amend the practical operation of drug patent/exclusivity protections under the FDCA and Public Health Service Act, require manufacturer reporting on pricing and R&D, establish a public database and annual congressional reports, and impose civil penalties for noncompliance. The measure would directly affect brand-name drug manufacturers, patent holders, generic and biosimilar applicants, and federal agencies responsible for drug approval and oversight.

Sentiment

No committee transcript or vote record is provided, so there is no direct evidence of debate, amendments, or recorded support/opposition. The bill’s stated purpose and structure indicate a strongly reform-oriented, consumer-focused approach aimed at lowering prescription drug prices, increasing transparency, and accelerating competition. Any sentiment-based concerns would likely come from stakeholders worried about government intervention, pricing benchmarks tied to foreign markets, and the effect on innovation incentives.

Contention

The most likely areas of contention are the bill’s reliance on international reference pricing, the Secretary’s broad discretion to deem prices “excessive,” and the automatic loss of exclusivity for affected drugs. Pharmaceutical manufacturers and patent holders would likely object to the possibility of forced licensing, mandatory disclosure of pricing and R&D data, and civil penalties tied to post-determination price increases. Supporters would likely emphasize affordability, competition, and transparency, while critics would focus on potential impacts on research investment, intellectual property rights, and drug launch incentives.

Companion Bills

US HB3546

Same As Prescription Drug Price Relief Act of 2025

Previously Filed As

US HB3546

Prescription Drug Price Relief Act of 2025

US SB1587

Fair Prescription Drug Prices for Americans Act

US HB3375

Fair Prescription Drug Prices for Americans Act

US A3406

Establishes prescription drug pricing disclosure requirements and measures to reduce prescription drug costs.

US HB3162

Affordable and Safe Prescription Drug Importation Act of 2025

US SB212

Enacting the prescription drug cost and affordability review act to establish the prescription drug pricing board and prescription drug affordability stakeholder council to review the cost of prescription medications and establish upper payment limits for certain prescription drugs.

US S875

To promote transparency in prescription drug prices

US SB1403

Prescription drugs; price limits

US H624

Prescription Drug Pricing

US A02126

Establishes a pilot program on the referenced rate for prescription drugs; relates to reducing the cost of prescription drugs by establishing maximum wholesale drug prices that are the same as the prices in Canada.

Similar Bills

No similar bills found.