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S 1954119th CongressIntroduced

Biosimilar Red Tape Elimination Act

Introduced: Jun 4, 2025
Healthcare
Standard Summary
Comprehensive overview in 1-2 paragraphs

The Biosimilar Red Tape Elimination Act would upend the current path to interchangeable status by treating every biosimilar licensed under the 351(k) pathway as interchangeable with its reference product, rather than requiring a separate agency determination. A transition period of 60 days after enactment creates a phased change: products licensed on or after the transition date are deemed interchangeable upon licensure (with a narrow exception tied to ongoing first-interchangeability exclusivity), while products licensed before the transition date become interchangeable on the transition date, unless exclusivity applies. Importantly, the act preserves existing first-interchangeability exclusivity for pre-enactment products for the full duration of that period. The bill also harmonizes related statutes (FDA and PHS Act provisions) to remove the need for separate “interchangeable” labeling or determinations, and to require updated guidance from the Secretary of Health and Human Services within 18 months. In addition to changing how interchangeability is established, the bill broadens how biosimilars are treated for purposes of FDA approvals (e.g., removing references to “interchangeable biosimilar” in some places) and adjusts the “new active ingredient” considerations under the Hatch-Waxman framework for biosimilars. The Secretary would also issue updated and revised guidance within 18 months to reflect these changes, including data and information requirements to support a determination that a biosimilar is biosimilar to its reference product.

Key Points

  • 1Interchangeability deemed upon licensure: Under the bill, a biosimilar approved under the 351(k) pathway would be considered interchangeable with its reference product at the time of licensure, subject to an exception related to existing first-interchangeability exclusivity.
  • 2Transition date and its effects: A transition date is defined as 60 days after enactment. Licenses issued on or after this date are interchangeable upon licensure unless affected by an ongoing exclusivity period; licenses issued before this date become interchangeable on the transition date, again subject to any exclusivity.
  • 3First interchangeable exclusivity preserved: For products with an unexpired first-interchangeability exclusivity period under prior law, that exclusivity remains in effect for its full duration.
  • 4Conforming amendments across related laws: The bill amends several provisions in the Public Health Service Act and the FDA’ s and FDA-related statutes to remove references to separate interchangeability determinations and interchangeable designations, aligning them with the deeming approach.
  • 5Secretary’s guidance and timelines: The Secretary must update and issue guidance within 18 months to reflect the changes, including revising prior guidance on demonstrating interchangeability and the data required to support biosimilarity and interchangeability, and then issue revised drafts or final versions after a public comment period.

Impact Areas

Primary group/area affected- Biosimilar manufacturers: Likely faster and cheaper path to market entry for many biosimilars due to automatic interchangeability, potentially increasing competition and reducing time-to-market.Secondary group/area affected- Pharmacists and pharmacies: Expanded substitution authority at the point of dispensing, constrained by state substitution laws and any ongoing exclusivity periods.- Healthcare providers and patients: Potentially greater access to lower-cost biosimilars; switching practices may become more common, with implications for monitoring and pharmacovigilance.- Payers and health plans: Increased competition among biosimilars could drive down costs and impact formulary decisions and rebate dynamics.Additional impacts- Regulatory and legal framework: Aligns federal law with a deeming standard, reducing the need for separate federal determinations of interchangeability and requiring updated guidance; could raise questions about how state laws interact with nationwide interchangeability status.- Innovation and exclusivity dynamics: The first-interchangeability exclusivity remains a gating mechanism, providing temporary market protection to the first to achieve interchangeability, potentially shaping competition among multiple biosimilars of the same reference product.- Safety and pharmacovigilance: Automatic substitution norms may necessitate robust post-market surveillance and state-level safeguards to ensure safe switching, with possible new guidance for tracking and traceability.
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