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Requires federal research agreements and related licenses to include HHS‑enforced price‑reasonableness terms tying U.S. prices to a median of Canada plus six OECD countries, and mandates manufacturer cost and revenue reporting.
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
The bill aims to make products developed with federal research funding more affordable and transparent for patients and taxpayers, but does so at the risk of reducing private incentives for drug development, prompting compliance costs, and potentially delaying U.S. access to some innovations.
Patients — including those with chronic conditions — and Medicare/Medicaid beneficiaries would likely face lower prices for biomedical products developed with federal research funding, reducing out‑of‑pocket costs and public program spending.
Taxpayers could get better value from federally funded research because pricing conditions tie public support to affordability, helping ensure public investments produce more accessible products.
Manufacturers would be required to disclose clinical trial costs, federal subsidies, and county‑level revenues, increasing price and subsidy transparency for hospitals, health systems, patients, and policymakers.
Biotech and pharmaceutical companies could face reduced revenues because of the foreign‑reference pricing standard, which may weaken incentives for private follow‑on R&D and discourage development of high‑cost, high‑value innovations.
Manufacturers might decline to commercialize, delay, or shift R&D and manufacturing offshore to avoid pricing obligations, potentially delaying or limiting U.S. patient access to new therapies.
Complying with detailed reporting requirements (trial‑level costs, subsidy disclosure, county‑level revenues) will impose administrative burdens and compliance costs on manufacturers, with impacts concentrated on smaller firms and potentially passed to taxpayers.
Based on analysis of 2 sections of legislative text.
Requires federal agencies that fund biomedical research to include contract and licensing terms that limit prices for biomedical products or services developed with that support, unless HHS Secretary waives the requirement. Sets a default “reasonable” pricing formula tied to the median price in Canada plus six other high‑income OECD countries, gives the HHS Secretary authority to issue regulations and other measures to lower prices or shorten exclusivity if revenues or prices exceed targets, and requires manufacturers to report clinical trial costs, federal subsidies, and annual product revenues by county for publication.