Sponsors (13)
The bill increases transparency and lowers prices for products developed with federal research funding—benefiting patients and public payers—while risking reduced industry revenues, weaker incentives for some future innovations, potential offshore shifts or commercialization delays, and added compliance and legal costs.
Patients — including people with chronic conditions and those on Medicare or Medicaid — would likely pay lower prices for biomedical products developed with federal research support because the bill caps prices relative to peer-country medians.
Medicare and Medicaid programs would likely see reduced spending on covered products if prices are lowered, which could improve program sustainability and free up resources for other services.
The public would get greater price transparency because manufacturers must report clinical trial costs, federal subsidies, and annual county-level revenues and the Secretary must publish those reports.
Biotech and pharmaceutical companies (including small firms) could face reduced revenues and weakened incentives to invest in follow‑on R&D, and tying U.S. prices to foreign medians may discourage development of high‑cost but high‑value innovations.
Manufacturers might decline to commercialize products in the U.S. or shift R&D and production offshore to avoid pricing obligations, which could delay or limit patient access to new therapies and strain health systems.
Compliance with detailed reporting requirements (trial-level costs, subsidy disclosures, county-level revenue reporting) will impose administrative burdens and costs on manufacturers, disproportionately affecting smaller companies.
Based on analysis of 2 sections of legislative text.
Requires price limits and reporting for biomedical products developed with federal research funding, tying U.S. prices to a median of Canada plus six high‑income OECD countries and giving HHS enforcement authority.
Requires federal agencies that fund biomedical research to put price limits into funding agreements and licenses so products developed with that support are sold at "reasonable" prices as set by the HHS Secretary. The Secretary must adopt a pricing formula tied to the median price in Canada plus six specified high-income OECD countries and may issue rules to further lower prices, shorten exclusivity, or require reporting when revenues or prices exceed targets. Also requires manufacturers or commercializing companies to report clinical trial costs, federal subsidies of those costs, and annual product revenues by county, with those reports published by HHS; allows HHS to waive the pricing requirement for public‑interest reasons after notice, hearings, and economic analysis.
Official title: To require persons who undertake federally funded research and development of a biomedical product or service to enter into reasonable pricing agreements with the Secretary of Health and Human Services, and for other purposes.
Introduced August 13, 2026 by Val Hoyle · Last progress August 13, 2026