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S-1954Senate2025-06-04Health

Biosimilar Red Tape Elimination Act

YourVoice.Now Summary

Average Household ImpactCorporate BenefitsTransparency & Accountability

Every FDA-licensed biosimilar would count as interchangeable automatically, easing pharmacy substitution without a separate FDA finding.

Average Household Impact

  • Pharmacy substitution — All licensed biosimilars deemed interchangeable with the brand product
  • Separate interchangeability review — FDA no longer makes a distinct finding before substitution

Corporate Benefits

  • Interchangeability filing burden — Separate showing no longer required of biosimilar makers
  • Existing exclusivity protection — Unexpired first-interchangeable periods preserved for their full term

Transparency & Accountability

  • Guidance prerequisite — FDA guidance is optional and its absence cannot delay an application

The details

Biosimilars are near-copies of expensive biologic drugs, like the ones used for arthritis or cancer. Today a biosimilar needs a second, separate FDA finding to be labeled "interchangeable." That label is what usually lets a pharmacist swap it for the brand without calling the prescriber. This measure ends the separate label. Any biosimilar the FDA licenses would count as interchangeable automatically. The change would take effect 60 days after enactment for drugs already on the market. Newly licensed biosimilars would qualify the day they are approved. One exception applies: if a competitor still holds an unexpired exclusivity period as the first interchangeable version of the same drug, the automatic status waits until that period runs out. Exclusivity periods already running are preserved. The FDA could issue guidance on what biosimilarity data it wants, but is not required to, and its absence could not hold up an application.

Congressional Summary

Biosimilar Red Tape Elimination ActThis bill deems all biosimilars licensed by the Food and Drug Administration (FDA) interchangeable with their reference products.A biosimilar is a biological product (e.g., a drug or vaccine) that is very similar to a brand-name biological product (i.e., the reference product). Under current law, a biosimilar that meets additional requirements may be deemed interchangeable with the reference product; this designation allows pharmacists to substitute the interchangeable biosimilar when filling a prescription for the reference product, depending on state law. Further, the first biosimilar deemed interchangeable with a given reference product is awarded a period of marketing exclusivity.The bill eliminates additional requirements for demonstrating interchangeability so that all licensed biosimilars are deemed interchangeable with their reference products. (Draft guidance released by the FDA in 2024 proposed to make some of these interchangeability requirements optional, including studies related to the safety of switching between use of the biosimilar and reference product. It has not been finalized.)This change takes effect 60 days after the bill is enacted, and previously licensed biosimilars must be deemed interchangeable with their reference products on that date. However, the bill preserves the exclusivity period for first interchangeable biosimilars licensed before the bill’s enactment. For example, if a new biosimilar licensed after the bill takes effect relies on the same reference product as an existing biosimilar that is subject to an unexpired exclusivity period, the new biosimilar is not deemed interchangeable with the reference product until the exclusivity period has ended.

Legislative Subjects

Drug safety, medical device, and laboratory regulationGovernment information and archivesLicensing and registrationsPrescription drugs

Details

Congress
119th
Chamber
Senate
Status
summarized
Action
Introduced in Senate
Action Date
2025-06-04
Date Added
2026-08-01
Source
Congress.gov →

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