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S. 1040 119th Congress Senate

Drug Competition Enhancement Act

Official title: A bill to amend the Federal Trade Commission Act to prohibit product hopping, and for other purposes.

Introduced: March 13, 2025 Introduced by: John Cornyn Republican · Texas See on congress.gov
Health Administrative remediesCivil actions and liabilityCompetition and antitrustConsumer affairs
More subjectsShow fewer subjects
Drug safety, medical device, and laboratory regulationFederal Trade Commission (FTC)Health care costs and insuranceInflation and pricesIntellectual propertyJudicial review and appealsManufacturingPrescription drugs
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 Everywhere this bill has been 5 steps
Introduced
In committee
Reported out
Passed House
Passed Senate
To President
Became law
Apr 10, 2025
Placed on Senate Legislative Calendar under General Orders. Calendar No. 43.
Apr 10, 2025
Committee on the Judiciary. Reported by Senator Grassley with an amendment. Without written report.
Apr 3, 2025
Committee on the Judiciary. Ordered to be reported with an amendment favorably.
Mar 13, 2025
Read twice and referred to the Committee on the Judiciary.
Mar 13, 2025
Introduced in Senate
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What's happening now April 10, 2025

Placed on Senate Legislative Calendar under General Orders. Calendar No. 43.

 Plain-English summary Congressional Research Service

Drug Competition Enhancement Act

This bill prohibits product hopping by drug manufacturers and authorizes the Federal Trade Commission (FTC) to enforce this prohibition.

Generally, product hopping describes a situation where, when the patents on a reference drug (or biological product) expire, the manufacturer switches to a follow-on product that is covered by a later-expiring patent. Under this bill, a follow-on product is a modified version of the reference drug that has an indication (what the drug is used for) that is identical or substantively similar to an indication of the reference drug.

The bill establishes a presumption that product hopping has occurred when a reference drug manufacturer, after receiving notice that the Food and Drug Administration has received an application to market a competing generic (or biosimilar) version, takes certain actions such as withdrawing the reference drug from the market and selling a follow-on product.

A drug manufacturer may rebut these presumptions by demonstrating that its conduct was not intended to limit competition.

The bill makes product hopping an unfair method of competition and provides for enforcement by the FTC. If the FTC has reason to believe a manufacturer has violated or is about to violate this prohibition on product hopping, the FTC may institute an administrative proceeding or bring suit in federal court to stop the manufacturer’s action and seek equitable remedies, including disgorgement of unjust profits or paying restitution to those harmed. 

 Hearings & markups 1
 Bill text 2 versions

Source documents hosted by congress.gov.

 Committees of jurisdiction 1
 Lobbying activity 210

Registered lobbyists who named this bill in their disclosure filings. Source: federal Lobbying Disclosure Act filings.

  • BCBSM, INC.
    for BCBSM INC · Minnesota · 3rd Quarter 2026 (July 1 - Sep 30)
  • PUBLIC CITIZEN
    for PUBLIC CITIZEN · District of Columbia · 3rd Quarter 2026 (July 1 - Sep 30)
  • RADIUS ADVOCACY, LLC
    for PHARMACEUTICAL RESEARCH AND MANUFACTURERS OF AMERICA · District of Columbia · 3rd Quarter 2026 (July 1 - Sep 30)
  • RADIUS ADVOCACY, LLC
    for COUNCIL FOR INNOVATION PROMOTION (C4IP) · District of Columbia · 3rd Quarter 2026 (July 1 - Sep 30)
  • BLUE CROSS AND BLUE SHIELD OF KANSAS, INC.
    for BLUE CROSS AND BLUE SHIELD OF KANSAS INC · Kansas · 3rd Quarter 2026 (July 1 - Sep 30)
  • MARSHALL & POPP, LLC
    for SANOFI U.S. SERVICES, INC. · District of Columbia · 3rd Quarter 2026 (July 1 - Sep 30)

Bodies those filers lobbied

A filing lists the bills it worked on and the parts of government it contacted in separate sections, so these are the bodies those filers named anywhere in the filing, not a per-bill breakdown.

See all 210 filings →
 Cosponsors 3
All 3 Democratic 2 Republican 1
D
Blumenthal, Richard
Connecticut · Mar 13, 2025
 D
Durbin, Richard J.
Illinois · Mar 13, 2025
 R
Grassley, Chuck
Iowa · Mar 13, 2025
Cite this page click to expand
APA
U.S. Congress. (2026). S. 1040: Drug Competition Enhancement Act. 119th Congress. Open America. https://openamerica.io/bill/119-S-1040/
MLA
"S. 1040: Drug Competition Enhancement Act." 119th Congress, 2026, Open America, https://openamerica.io/bill/119-S-1040/.
Bluebook (legal)
S. 1040, 119th Cong. (2026), https://openamerica.io/bill/119-S-1040/.
Markdown link
[S. 1040: Drug Competition Enhancement Act](https://openamerica.io/bill/119-S-1040/)
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