The Small Biotech Innovation Act would exempt certain drugs made by small biotech companies from Medicare's drug price negotiation program starting in 2029. The bill creates an exception for "research and development-intensive" small biotech manufacturers, defined as companies with five or fewer drugs that spend a significant portion of their revenue on research and development. The required research and development spending threshold ranges from 30 percent of net revenue for companies with one drug up to 70 percent for companies with five drugs, calculated as an average over the previous three years. Companies seeking the exemption must apply annually to the government and provide documentation of their spending, and the exemption would be lost if a company is acquired by a manufacturer that doesn't meet the criteria. This legislation would allow smaller biotech firms that are focused on innovation to keep their drugs outside the Medicare negotiation process, potentially preserving higher prices for their medications.
Take Action
Your position
Add a comment
to comment on this bill.
Annotate the text
Highlight any passage on the Summary or Full Text tab to attach a note. Annotations appear on the Annotations tab.