Sustainable Drug Pricing Act

Bill: 108-hr-4899
Sponsor: Rep. Brown, Sherrod [D-OH-13]
Introduced: 2004-07-22 in the House
Policy area: Health
Subjects: Business records
Commerce
Corporation taxes
Costs
Drug advertising
Drugs
Federal advisory bodies
Fines (Penalties)
Foreign tax credit
Government Operations and Politics
Government paperwork
Income tax
Law
Pharmaceutical research
Prescription pricing
Research and development
Science, Technology, Communications
Tax deductions
Taxation
Wholesale trade

Summary:
action_date: 2004-07-22
text: 
Sustainable Drug Pricing Act - Amends the Public Health Service Act to require the Secretary of Health and Human Services to enter into agreements with the manufacturers of brand name prescription drugs for four-year terms to establish a maximum wholesale price for such drugs. Defines brand name prescription drugs as FDA-approved prescription drugs with market exclusivity. Requires such agreements to specify a liquidated penalty that is sufficient to deter violations for failure to maintain substantial compliance. Allows the Secretary to notify the Secretary of the Treasury that there is no longer an effective agreement in place if such a penalty is not paid. Requires the Secretary to monitor prices to ensure compliance. Allows the Secretary to require manufacturers entering into such agreements to cooperate with such monitoring and to allow the Secretary access to relevant financial records.
 
Requires the Secretary to establish the Advisory Panel on Drug-Price Negotiations to advise the Secretary on establishing prices. Requires the Panel to provide the Secretary with recommended drug prices for 25 drugs that the Panel considers important to the public health and for an additional 25 drugs that are the most commonly prescribed drugs in the United States.
 
Amends the Internal Revenue Code of 1986 to disallow: (1) a deduction for advertising, promotion, or marketing of brand name prescription drugs without a qualified pricing agreement in effect for the entire taxable year; and (2) a foreign tax credit for such drugs manufactured by the taxpayer without a qualified pricing agreement in effect for the entire taxable year.


Legislative actions:
action_date: 2004-07-22
text: Referred to the Subcommittee on Health.
action_date: 2004-07-22
text: Referred to the Committee on Energy and Commerce, and in addition to the Committee on Ways and Means, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
action_date: 2004-07-22
text: Referred to the Committee on Energy and Commerce, and in addition to the Committee on Ways and Means, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
action_date: 2004-07-22
text: Referred to the Committee on Energy and Commerce, and in addition to the Committee on Ways and Means, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
action_date: 2004-07-22
text: Introduced in House
action_date: 2004-07-22
text: Introduced in House