PolicyBrief
H.R. 1051
119th CongressFeb 6th 2025
To amend the Federal Food, Drug, and Cosmetic Act to allow for the approval of an abbreviated new drug application submitted by a subsequent applicant in the case of a failure by a first applicant to commence commercial marketing within a certain period, and for other purposes.
IN COMMITTEE

This bill amends the Federal Food, Drug, and Cosmetic Act to allow the approval of generic drugs even if another applicant has 180-day exclusivity, under certain conditions including a 75-day commitment to commercial marketing, and establishes penalties for failure to market the drug within that timeframe.

Nicole (Nikki) Budzinski
D

Nicole (Nikki) Budzinski

Representative

IL-13

LEGISLATION

Generic Drug Approval Shake-Up: New Bill Aims to Speed Up Access, But With a Catch

The new bill amends the Federal Food, Drug, and Cosmetic Act, specifically targeting the 180-day exclusivity period that generic drug manufacturers can get. The goal? To stop companies from snagging that exclusivity and then sitting on it, blocking other generics from hitting the market. This legislation introduces a "use it or lose it" clause designed to get affordable medications to consumers faster.

"Fast Track or False Start?"

The core change is this: If a company is first to file for a generic drug approval (and gets that 180-day exclusivity), but doesn't actually launch their product, the FDA can now approve other generic applications. There are conditions, of course. At least 33 months must have passed since the first application. The subsequent applicant must certify they're ready to roll out the drug within 75 days of getting the green light (Section 1). And if they don't? Their approval becomes "tentative," and they might even get blocked from future approvals unless they can prove something truly unforeseen stopped them (and that they've fixed the issue).

Think of it like this: A local bakery gets exclusive rights to sell a special kind of bread, but they never actually bake it. This bill lets another bakery step in if they can prove they'll have fresh loaves on shelves within 75 days. For a construction worker needing a specific medication, this could mean getting it sooner and cheaper, rather than waiting indefinitely.

"The 75-Day Hustle"

This is where things get interesting. That 75-day window is tight. It's great in theory – pushing companies to get drugs to market quickly. But what if a small manufacturer faces a sudden supply chain issue? Or a packaging delay? They could lose their approval, even if they were genuinely trying. The bill does include an "unforeseen event" exception (Section 1), but how that plays out in practice is a big question mark. It also places a significant burden on smaller generic manufacturers, who may not have the same resources as larger companies to guarantee such a rapid launch.

"Balancing Speed and Stability"

This bill tries to strike a balance. It aims to prevent "parking" – where a company gets exclusivity but doesn't use it, effectively blocking competition. This is a good thing for consumers, potentially leading to lower prices and more choices. However, the tight deadlines and potential penalties could create some market instability. Will companies be hesitant to apply, knowing they face such strict timelines? Could this lead to fewer generics in the long run? These are questions that will only be answered once the bill is implemented. It also adds another layer of complexity to an already complicated process, potentially increasing administrative burdens for both the FDA and generic drug companies. The bill only applies to applications filed after it's enacted, and for drugs where no certification was made before the enactment date, so its immediate impact might be limited (Section 1).