summary
Introduced
01/16/2026
01/16/2026
In Committee
01/20/2026
01/20/2026
Crossed Over
Passed
Dead
Introduced Session
104th General Assembly
Bill Summary
Creates the Prohibition on Anticompetitive Pharmaceutical Practices Act. Provides that, except as specified, a court before which the Attorney General brings an action under the Act shall presume that a resolution agreement that ends a dispute over an alleged infringement of a patent, or a violation of other protection for a protected drug, has anticompetitive effects and is a violation of the Act if, as part of or in connection with the resolution agreement, an alleged infringer: (1) receives an item of value; or (2) agrees to limit or stop researching, developing, manufacturing, marketing, or selling a competing drug. Provides that a resolution agreement does not violate the Act and a party to the resolution agreement may overcome the presumption of anticompetition if the party, by a preponderance of evidence, can demonstrate that: (1) the item of value that the alleged infringer received is fair and reasonable compensation solely for other goods or services that the claimant promised to provide to the alleged infringer; or (2) the agreement has directly generated procompetitive benefits within the relevant market and the procompetitive benefits of the resolution agreement favor competition to the extent that the procompetitive benefits materially outweigh the anticompetitive effects of the resolution agreement. Sets forth provisions concerning penalties and enforcement of the Act by the Attorney General. Provides that the Act applies to resolution agreements: (1) that are negotiated, completed, or entered into within the State on or after the effective date of this Act; (2) where the dispute arose out of or was substantially related to pharmaceutical sales that were made within the State; or (3) where a party to the resolution agreement is an entity registered to conduct business within the State.
AI Summary
This bill, titled the Prohibition on Anticompetitive Pharmaceutical Practices Act, establishes new rules for agreements that resolve disputes over alleged patent infringement or other protections for a "protected drug" (a pharmaceutical drug protected by a patent or federal law). The Act presumes that such "resolution agreements" (any agreement ending a dispute) are anticompetitive and violate the law if, as part of the agreement, an "alleged infringer" (someone accused of infringing a drug's protection) either receives something of value or agrees to limit their research, development, manufacturing, marketing, or sale of a "competing drug" (a drug similar enough to compete). However, this presumption can be overcome if the parties can prove, by a preponderance of evidence, that any payment received was fair compensation for other goods or services, or that the agreement directly created procompetitive benefits that significantly outweigh any anticompetitive effects. The Act also outlines penalties, including civil penalties of three times the value of the item received or $10 million, and grants the Attorney General enforcement powers. These provisions apply to agreements negotiated, completed, or entered into within the state on or after the Act's effective date, or those related to pharmaceutical sales within the state, or involving an entity registered to do business in the state.
Sponsors (1)
Last Action
Referred to Rules Committee (on 01/20/2026)
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