nel, protein, DNA or RNA sequence 
or mutation, virus, or any other sci-
entific 
information 
discovered, 
in 
whole or in part, through research 
funded by the Federal Government; or 
‘‘(III) relates to, or is based 
upon, through the manufacturing 
process or testing process of the cov-
ered blockbuster drug, technology de-
rived, in whole or in part, through re-
search funded by the Federal Govern-
ment. 
‘‘(B) 
COVERED
MANUFACTURER.—The 
term ‘covered manufacturer’ means a person— 
‘‘(i) that holds an application ap-
proved under section 505 of the Federal 
Food, Drug, and Cosmetic Act or a license 
under section 351 of this Act for a covered 
blockbuster drug; or 
‘‘(ii) who is a co-licensed partner of 
the person described in clause (i) that ob-
tains the covered blockbuster drug directly 
from a person described in this clause or 
clause (i). 
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‘‘(C) 
COVERED
SETTLEMENT
AGREE-
MENT.— 
‘‘(i) IN GENERAL.—The term ‘covered 
settlement agreement’ means a settlement 
agreement (including a consent decree), 
and except as provided under clause (ii)— 
‘‘(I) that is between an agency 
and a covered manufacturer; 
‘‘(II) that relates to— 
‘‘(aa) an alleged violation of, 
or 
a 
penalty 
under, 
section 
1128A of the Social Security Act 
or section 1128B of the Social 
Security Act; 
‘‘(bb) an alleged violation 
under subchapter III of chapter 
37 of title 31, United States 
Code (commonly known as the 
‘False Claims Act’); 
‘‘(cc) an alleged violation 
under the Federal Food, Drug, 
and Cosmetic Act; or 
‘‘(dd) an alleged violation of 
any other Federal civil or crimi-
nal law; and 
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‘‘(III) under the terms of which a 
covered manufacturer is obligated in 
an amount not less than a total of 
$1,000,000, including civil or criminal 
penalties with respect to any parties, 
including governmental and private 
entities. 
‘‘(ii) EXCEPTION FOR SETTLEMENTS 
NOT
AFFECTING
TAXPAYERS
OR
PUBLIC 
HEALTH.—The term ‘covered settlement 
agreement’ does not include any settlement 
agreement that the Secretary determines— 
‘‘(I) does not involve an alleged 
criminal violation; and 
‘‘(II) does not relate to— 
‘‘(aa) allegations of fraud re-
sulting, or potentially resulting, 
in a loss of taxpayer dollars; or 
‘‘(bb) allegations of conduct 
having an adverse impact, or a 
potentially adverse impact, on the 
health of the public. 
‘‘(D) PERSON.—The term ‘person’ has the 
meaning given such term in section 201(e) of 
the Federal Food, Drug, and Cosmetic Act. 
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‘‘(E) 
PRODUCT.—The 
term 
‘product’ 
means a drug approved under section 505 of 
the Federal Food, Drug, and Cosmetic Act or 
licensed under section 351, and subject to sec-
tion 503(b)(1) of the Federal Food, Drug, and 
Cosmetic Act. 
‘‘(2) SUPPLEMENTAL PAYMENTS TO INCREASE 
CONGRESSIONAL
INVESTMENTS
IN
MEDICAL
RE-
SEARCH.— 
‘‘(A) SUPPLEMENTAL
PAYMENT
ASSESS-
MENT AND COLLECTION.—Beginning with the 
first fiscal year that begins at least 60 days 
after the date of enactment of the Medical In-
novation Act of 2024, and each subsequent fis-
cal year, the Secretary shall, in accordance with 
this paragraph, assess and collect supplemental 
payments to increase congressional investments 
in medical research from each covered manufac-
turer described in subparagraph (B). 
‘‘(B) CRITERIA
FOR
ASSESSING
PAY-
MENTS.—A covered manufacturer that meets 
both of the following criteria for a calendar year 
(referred to in this subparagraph and subpara-
graph (D) as the ‘applicable calendar year’) 
shall be assessed a supplemental payment under 
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subparagraph (A) for the fiscal year beginning 
in the proceeding calendar year: 
‘‘(i) A covered manufacturer that, 
during the 5-year period immediately pre-
ceding the date on which the payment is 
assessed, but not before the date of enact-
ment of the Medical Innovation Act of 
2024, entered into a covered settlement 
agreement. 
‘‘(ii) A covered manufacturer that re-
ported 
net 
income 
of 
at 
least 
$1,000,000,000 to the Securities and Ex-
change Commission on a form, including 
form 10–K or form 20–F, or that the Sec-
retary otherwise determines to have had 
net income of at least $1,000,000,000— 
‘‘(I) during the applicable cal-
endar year; or 
‘‘(II) during the calendar year in 
which the covered manufacturer en-
tered into a covered settlement agree-
ment, as described in clause (i). 
‘‘(C) PAYMENT AMOUNT.— 
‘‘(i) IN GENERAL.—A covered manu-
facturer described in subparagraph (B) 
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shall be assessed a supplemental payment 
to increase congressional investments in 
medical research for a fiscal year equal to 
the applicable percentage of the net income 
of the covered manufacturer, as reported 
or determined as described in subpara-
graph (B)(ii), for the previous calendar 
year, multiplied by the number of covered 
blockbuster drugs of the covered manufac-
turer for that year. 
‘‘(ii) APPLICABLE PERCENTAGE.—For 
purposes of determining the amount of a 
supplemental payment under clause (i), the 
applicable percentage of the net income of 
a covered manufacturer is— 
‘‘(I) 0.75 percent, in the case of 
a covered settlement agreement under 
the terms of which the total obligation 
of a covered manufacturer is in an 
amount 
that 
is 
less 
than 
$500,000,000; 
‘‘(II) 1 percent, in the case of a 
covered settlement agreement under 
the terms of which the total obligation 
of a covered manufacturer is in an 
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