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To amend title XI of the Social Security Act to establish a research and development-intensive small biotech manufacturer exception from the Medicare drug price negotiation program.
Summary
This bill exempts drugs from certain small biotech manufacturers from Medicare's drug price negotiation program beginning in 2029. A "research and development-intensive small biotech manufacturer" is defined as a company with five or fewer qualifying drugs that invests at least 30 to 70 percent of its net revenue (depending on the number of drugs) in research and development. Manufacturers must annually apply to the Secretary of Health and Human Services and provide documentation of their R&D spending to qualify for the exemption. If a manufacturer is acquired by another company that does not meet the definition of a research and development-intensive small biotech manufacturer, the exemption is lost. The bill includes a dispute resolution process for manufacturers to appeal determinations that they do not qualify for the exemption.
AI-generated plain-language summary of the bill text — neutral, and may be imperfect. See the full text below for the exact wording.
Sponsor (1)
4 cosponsors
Money behind the sponsor
Top reported contributors to August Pfluger’s campaign committee (2024 cycle) — who funds the bill’s sponsor, not a claim about this bill. Data from FEC.
Organizations whose employees gave the most — itemized individual contributions grouped by the donor’s reported employer (FEC Schedule A). Full finance for August Pfluger → · Outside spending →
Actions (2)
- Jun 4, 2025 Referred to the Committee on Energy and Commerce, and in addition to the Committee on Ways and Means, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned. · house
- Jun 4, 2025 Introduced in House
Similar bills (6)
Bills with similar text or summary — includes reintroductions across Congresses. Ranked by semantic similarity of the bill text (computed locally); a neutral discovery aid, not a claim the bills are duplicates.
Text versions (1)
Bills are re-published as they move (Introduced → Reported → Engrossed → Enrolled …). Each stage below is a separate text; pick two to see what changed. Data from Congress.gov.
Full text
IN THE HOUSE OF REPRESENTATIVES
June 4, 2025
Mr. Pfluger (for himself and Mr. Kustoff) introduced the following bill; which was referred to the Committee on Energy and Commerce, and in addition to the Committee on Ways and Means, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned
A BILL
To amend title XI of the Social Security Act to establish a research and development-intensive small biotech manufacturer exception from the Medicare drug price negotiation program.
Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the “Small Biotech Innovation Act”.
SEC. 2. RESEARCH AND DEVELOPMENT-INTENSIVE SMALL BIOTECH MANUFACTURER EXCEPTION FROM MEDICARE DRUG PRICE NEGOTIATION PROGRAM.
Section 1192(d)(2) of the Social Security Act (42 U.S.C. 1320f- 1(d)(2)) is amended by adding at the end the following new subparagraph:
“(D) Research and development-intensive small biotech manufacturer exception for 2029 and subsequent years.—
“(i) In general.—With respect to initial price applicability years (beginning with initial price applicability year 2029), subject to the succeeding provisions of this subparagraph, the term ‘negotiation eligible drug’ shall not include a qualifying single source drug (as defined in subsection (e)) of a research and development-intensive small biotech manufacturer (as defined in clause
(ii)).
“(ii) Definitions.—In this subparagraph:
“(I) Applicable percent.—The term ‘applicable percent’ means— “(aa) in the case of a small biotech manufacturer that has 1 qualifying single source drug, 30 percent; “(bb) in the case of a small biotech manufacturer that has 2 qualifying single source drugs, 40 percent;
“(cc) in the case of a small biotech manufacturer that has 3 qualifying single source drugs, 50 percent;
“(dd) in the case of a small biotech manufacturer that has 4 qualifying single source drugs, 60 percent; and “(ee) in the case of a small biotech manufacturer that has 5 qualifying single source drugs, 70 percent.
“(II) Small biotech manufacturer defined.—The term ‘small biotech manufacturer’ means a manufacturer that— “(aa) has 5 or less qualifying single source drugs; and “(bb) is not owned by, controlled by, or subject to the jurisdiction or direction of a government of a foreign country, or organized under the laws of a foreign country that is a covered nation (as defined in section 4872(f) of title 10, United States Code).
“(III) Research and development- intensive small biotech manufacturer defined.—The term ‘research and development-intensive small biotech manufacturer’ means a small biotech manufacturer that invests at least the applicable percent of their net revenue from the average of the previous three years in research and development (determined based on generally accepted accounting principles).
“(iii) Treatment in case of acquisition.— A drug shall not be considered to be a qualifying single source drug of a research and development-intensive small biotech manufacturer if the manufacturer of such drug is acquired after 2029 by another manufacturer that does not meet the definition of a research and development-intensive small biotech manufacturer, effective at the beginning of the plan year immediately following such acquisition.
“(iv) Annual application.—In order for a qualifying single source drug of a research and development-intensive small biotech manufacturer to be eligible for the exception under this subparagraph with respect to an initial price applicability year (beginning with initial price applicability year 2029), the manufacturer shall submit an application to the Secretary (at a time specified by the Secretary) containing—
“(I) information on the net product revenue and research and development expenditures of the manufacturer during the relevant time period;
“(II) a certification that the information submitted by the manufacturer under subclause (I) is accurate and complete to the best of the manufacturer’s knowledge; and
“(III) such other information as the Secretary may specify.
“(v) Dispute resolution.—The Secretary shall develop a process under which a manufacturer may appeal a determination by the Secretary that the manufacturer is not a research and development-intensive small biotech manufacturer. Such process shall conclude, with respect to a manufacturer, not later than the selected drug publication date with respect to the initial price applicability year for which the manufacturer submitted an application under clause (iv).”. <all>
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