Chairman Nadler Statement for the Markup of H.R. 2873, the Affordable Prescriptions for Patients Through Promoting Competition Act of 2021
Washington, September 29, 2021
Washington, D.C. - Today, House Judiciary Committee Chairman Jerrold Nadler (D-NY) delivered the following opening statement, as prepared, during the markup of H.R. 2873, the Affordable Prescriptions for Patients Through Promoting Competition Act of 2021:
"H.R. 2873, the 'Affordable Prescriptions for Patients Through Promoting Competition Act of 2021' is bipartisan legislation introduced by Antitrust Subcommittee Chairman Cicilline and Ranking Member Ken Buck to end an anti-competitive practice known as product hopping.
"Product hopping is an abusive tactic that involves making a trivial change to a product that is facing the end of patent exclusivity—such as a change to its dosage or delivery mechanism—to avoid generic competition. The pharmaceutical company then either removes the old product from the market or makes the old product seem much less attractive than the new product.
"Doctors and patients, therefore, have essentially no choice but to switch to the new—but not necessarily improved—prescription drug, which allows the drug maker to continue charging monopoly prices.
"To address these concerns, H.R. 2873 would prohibit this practice by establishing that it is an unfair method of competition in violation of the Federal Trade Commission Act.
"In doing so, not only would this legislation help deter such conduct in the first place through the FTC’s ability to obtain equitable monetary relief, but it would also expedite traditional proceedings by providing much-needed clarity to the law."According to the nonpartisan Congressional Budget Office, this bipartisan legislation will save American taxpayers hundreds of millions of dollars over a 10-year period. I thank Chairman Cicilline and Ranking Member Buck for their leadership on this vital legislation, and I urge all Members to support it."