Sitting Here on Capitol Hill: Congressional Developments on Life Science and Consumer Product Issues - October 2019

Wilson Sonsini Goodrich & Rosati

Wilson Sonsini Goodrich & Rosati

In This Issue

  1. Drug Manufacturing: Sen. Grassley Pressures Company Over Data Manipulation
  2. Medical Product Innovation: Update to 21st Century Cures Act in the Works
  3. Drug Pricing: Senate Finance Committee Releases Text of Committee-Passed Bill
  4. Cosmetics Reform: House Progressives Introduces Legislation
  5. Bill Introductions
  6. State Activity

Letters and Statements

Drug Manufacturing: Sen. Grassley Pressures Novartis Over Data Manipulation

Senator Charles Grassley (R-IA), chairman of the Senate Finance Committee, sent a letter in August to Novartis International AG CEO Vasant Narasimhan requesting documents relating to AveXis, a subsidiary of Novartis, manipulating data about a treatment for infants suffering from spinal muscular atrophy. The treatment, Zolgensma, is the most expensive drug in the world.

“...AveXis became aware of the data manipulation before the FDA approved Zolgensma but intentionally withheld that information from the FDA until after the product was approved,” Sen. Grassley wrote. “Such conduct is reprehensible and could have an adverse effect on patients. Accordingly, the conduct ought to be investigated and, as appropriate, punished to the fullest extent of the law.”

Sen. Grassley sent a letter to the FDA on August 7 urging the agency to reinstate unannounced inspections of prescription drug manufacturing facilities in foreign countries. He explained that the reinstatement should occur in light of the administration’s new “Safe Importation Action Plan” as well as the fact that these facilities provide most of the ingredients for production inside the U.S.

In the letter, Sen. Grassley argued, “Unbeknownst to many consumers...80 percent of Active Pharmaceutical Ingredients are produced abroad, the majority in China and India; however, the FDA only inspected one in five registered human drug manufacturing facilities abroad last year.”

“I strongly encourage the administration’s demonstration projects to include unannounced inspections in foreign manufacturing facilities to determine whether they meet the required Active Pharmaceutical Ingredients and drug quality and safety standards to include sufficient record-keeping, testing and protections against counterfeiting,” the letter concluded.


Medical Product Innovation: Update to 21st Century Cures Act in the Works

Rep. Fred Upton (R-MI) recently revealed that he and Rep. Diana DeGette (D-CO) Upton are working on legislation that would update the 21st Century Cures Act. Reps. Upton and DeGette were co-authors of the bill that was signed into law in late 2016 that is designed to accelerate medical product development and facilitate patient access to new innovations.

In a statement during a House Energy and Commerce Health Subcommittee hearing, Rep. Upton divulged that they currently are in the listening stage of a “Cures 2.0” version, seeking input from various groups on how to improve the law. He noted that he hoped that the proposed draft bill could be completed by early next year.

Drug Pricing: Senate Finance Committee Releases Text of Committee-Passed Bill

The leaders of the Senate Finance Committee recently released the text of bipartisan drug pricing legislation the committee passed in late July. Chairman Chuck Grassley (R-IA) and Ranking Member Ron Wyden (D-OR) formally introduce the bill, S. 2543, entitled the Prescription Drug Pricing Reduction Act (PDPRA) that would make reforms in Medicare and Medicaid, increase transparency, and curb abuses.

As reported previously when the bill passed the committee, the bill specifically would require the Department of Health and Human Services (DHHS) to make public on its website, beginning on July 1, 2022, data reported to it by insurers and pharmacy benefit managers (PBMs) under Medicare Part D requirements on an aggregate basis. In addition, DHHS would be required to report discrepancies related to direct and indirect remuneration information submitted by Part D plans and results of independent financial audits. The bill would also require Part D insurers to conduct audits of PBMs and report certain financial information to pharmacies and DHHS.

With respect to manufacturers, the bill would require a mandatory rebate if a pharmaceutical manufacturer increases its list price for certain covered Part D drugs above inflation. Further, it would require a manufacturer to submit justifications to DHHS for price increases for prescription drugs and biologics where DHHS determines that the manufacturer’s price increase met or exceeded certain thresholds. DHHS would be required to publicly post the price justifications.

For Medicaid, the bill would require enhanced auditing and reporting of the price and drug product information reported by manufacturers of covered outpatient drugs. It would also limit payment to PBMs under Medicaid to prevent abusive spread pricing and require DHHS to conduct surveys regarding payments for and prices of drugs covered under Medicaid programs.

In addition to the text of the bill, a committee report and a section-by-section analysis was released to the accompany the bill.

Cosmetics Reform: House Progressives Introduce Legislation

Rep. Jan Schakowsky (D-IL) and a group of House progressives recently introduced their version of cosmetics reform legislation—H.R. 4296, the Safe Cosmetics and Personal Care Products Act. Long active on cosmetics reform, Rep. Schakowsky first introduced this bill in 2010 and has expressed a commitment to passing a strong regulatory framework for cosmetics and personal care products.

This bill will not be the main vehicle that will be considered by the House if it moves forward on cosmetic reforms legislation. That bill—the Personal Care Products Safety Act †”is being drafted by Rep. Frank Pallone (D-NJ), Chairman of the House Energy and Commerce Committee, and Rep. John Shimkus (R-IL) and they hope to introduce it this fall.

The type of legislation introduced by Rep. Schakowsky is often described as a “marker bill,” in that it outlines the priorities of a certain group of lawmakers on a key policy issue being considered. The goal of introducing these marker bills is to influence the debate on key legislation ideally to the point where key provisions of the marker bill are inserted into the final version of the legislation that ultimately gets enacted.

In remarks introducing the bill, Rep. Schakowsky described it as the “progressive standard bearer” in establishing a robust regulatory framework to ensure the safety of cosmetics and personal care products. She added that it would “close major loopholes in federal law that allow companies to use nearly any ingredient in these products—even chemicals that are known to harm human health and the environment like coal tar dyes, formaldehyde, lead acetate, parabens, and phthalates.”

Under the bill, manufacturers would be required to register with the FDA and disclose all the ingredients in their products, including secret fragrance ingredients. The FDA would be granted new authority to recall unsafe products and remove them from the market while providing public notice of recalls. The legislation also would completely ban toxic ingredients in cosmetics and ban animal testing where a validated, non-animal testing alternative exists. This bill has been updated and the new version includes provisions that would protect highly exposed and vulnerable populations, including salon workers.

Bill Introductions


  • S. 2543 – Introduced on September 25 by Sen. Charles Grassley (R-IA). The bill, entitled the Prescription Drug Pricing Reduction Act, would aim to lower prescription drug prices in the Medicare and Medicaid programs, to improve transparency related to pharmaceutical prices and transactions, to lower patients’ out-of-pocket costs, and to ensure accountability (more details above).


  • H.R. 4296 – Introduced on September 12 by Rep. Jan Schakowsky (D-IL); co-sponsored by Reps. Sean Patrick Maloney (D-NY), Barbara Lee (D-CA), Ted Lieu (D-CA), Raul Grijalva (D-AZ), Rosa DeLauro (D-CT), Jared Huffman (D-CA), Ayanna Pressley (D-MA), Alcee Hastings (D-FL), Alan Lowenthal (D-CA), Judy Chu (D-CA), Jackie Speier (D-CA), Pramila Jayapal (D-WA), Diana DeGette (D-CO), Chellie Pingree (D-ME), Doris Matsui (D-CA), and Debbie Wasserman Schultz (D-FL). A bill to ensure the safe use of cosmetics (more details above).
  • H.R. 4322 – Introduced on September 12 by Rep. Donna Shalala (D-FL); co-sponsored by Reps. Matt Gaetz (D-FL), Barbara Lee (D-CA), and Joe Courtney (D-CT). A bill to promote cannabis research. The bill was referred to the House Energy and Commerce, and Judiciary Committees.
  • H.R. 4455 – Introduced on September 20 by Rep. Kurt Schrader (D-OR); co-sponsored by Rep. Greg Gianforte (R-MT). A bill to provide for a temporary payment increase under the Medicare program for certain biosimilar biological products to encourage the development and use of such products. The bill was referred to the House Energy and Commerce, and Ways and Means Committees.
  • H.R. 4538 – Introduced on September 26 by Rep. Peter Welch (D-VT); co-sponsored by Rep. McKinley (R-WV). A bill to limit the orphan drug exclusion under the drug discount program under section 340B of the Public Health Service Act. The bill was referred to the House Energy and Commerce Committee.
  • H.R. 4587 – Introduced on October 1 by Rep. Scott Peters (D-CA); co-sponsored by Reps. Anthony Brindisi (D-NY) and Peter King (R-NY). A bill to eliminate cost sharing for biosimilar biological products furnished under Medicare part B. The bill was referred to the House Energy and Commerce, and the House Ways and Means Committees.
  • H.R. 4619 – Introduced on October 8 by Rep. Jan Schakowsky (D-IL); co-sponsored by Reps. Brian Higgins (D-NY) and Susan Wild (D-PA). A bill to require drug manufacturers to pay a Medicare part D rebate for certain drugs if the price of such drugs increases faster than inflation. The bill was referred to the House Energy and Commerce, and Ways and Means Committees.

State Activity

CALIFORNIA: California recently enacted a law targeting so-called “pay-for-delay” agreements between pharmaceutical companies. While there is a body of caselaw addressing this issue, especially following the Supreme Court’s seminal Actavis decision, this is the first law on this topic, federal or state. On October 7, Governor Gavin Newsom (D) signed the law that aims to combat illegal agreements in which the brand drug company pays a generic or biosimilar applicant to delay the generic/biosimilar applicant’s research, production, or sale of a competing version of its drug. The new law, which goes into effect on January 1, 2020, would presume these agreements are anti-competitive. The law also provides certain limited exceptions to the prohibition. If found liable, the defendant may be liable for up to $20 million in civil penalties.

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Wilson Sonsini Goodrich & Rosati | Attorney Advertising

Written by:

Wilson Sonsini Goodrich & Rosati

Wilson Sonsini Goodrich & Rosati on:

Readers' Choice 2017
Reporters on Deadline

"My best business intelligence, in one easy email…"

Your first step to building a free, personalized, morning email brief covering pertinent authors and topics on JD Supra:
*By using the service, you signify your acceptance of JD Supra's Privacy Policy.
Custom Email Digest
- hide

JD Supra Privacy Policy

Updated: May 25, 2018:

JD Supra is a legal publishing service that connects experts and their content with broader audiences of professionals, journalists and associations.

This Privacy Policy describes how JD Supra, LLC ("JD Supra" or "we," "us," or "our") collects, uses and shares personal data collected from visitors to our website (located at (our "Website") who view only publicly-available content as well as subscribers to our services (such as our email digests or author tools)(our "Services"). By using our Website and registering for one of our Services, you are agreeing to the terms of this Privacy Policy.

Please note that if you subscribe to one of our Services, you can make choices about how we collect, use and share your information through our Privacy Center under the "My Account" dashboard (available if you are logged into your JD Supra account).

Collection of Information

Registration Information. When you register with JD Supra for our Website and Services, either as an author or as a subscriber, you will be asked to provide identifying information to create your JD Supra account ("Registration Data"), such as your:

  • Email
  • First Name
  • Last Name
  • Company Name
  • Company Industry
  • Title
  • Country

Other Information: We also collect other information you may voluntarily provide. This may include content you provide for publication. We may also receive your communications with others through our Website and Services (such as contacting an author through our Website) or communications directly with us (such as through email, feedback or other forms or social media). If you are a subscribed user, we will also collect your user preferences, such as the types of articles you would like to read.

Information from third parties (such as, from your employer or LinkedIn): We may also receive information about you from third party sources. For example, your employer may provide your information to us, such as in connection with an article submitted by your employer for publication. If you choose to use LinkedIn to subscribe to our Website and Services, we also collect information related to your LinkedIn account and profile.

Your interactions with our Website and Services: As is true of most websites, we gather certain information automatically. This information includes IP addresses, browser type, Internet service provider (ISP), referring/exit pages, operating system, date/time stamp and clickstream data. We use this information to analyze trends, to administer the Website and our Services, to improve the content and performance of our Website and Services, and to track users' movements around the site. We may also link this automatically-collected data to personal information, for example, to inform authors about who has read their articles. Some of this data is collected through information sent by your web browser. We also use cookies and other tracking technologies to collect this information. To learn more about cookies and other tracking technologies that JD Supra may use on our Website and Services please see our "Cookies Guide" page.

How do we use this information?

We use the information and data we collect principally in order to provide our Website and Services. More specifically, we may use your personal information to:

  • Operate our Website and Services and publish content;
  • Distribute content to you in accordance with your preferences as well as to provide other notifications to you (for example, updates about our policies and terms);
  • Measure readership and usage of the Website and Services;
  • Communicate with you regarding your questions and requests;
  • Authenticate users and to provide for the safety and security of our Website and Services;
  • Conduct research and similar activities to improve our Website and Services; and
  • Comply with our legal and regulatory responsibilities and to enforce our rights.

How is your information shared?

  • Content and other public information (such as an author profile) is shared on our Website and Services, including via email digests and social media feeds, and is accessible to the general public.
  • If you choose to use our Website and Services to communicate directly with a company or individual, such communication may be shared accordingly.
  • Readership information is provided to publishing law firms and authors of content to give them insight into their readership and to help them to improve their content.
  • Our Website may offer you the opportunity to share information through our Website, such as through Facebook's "Like" or Twitter's "Tweet" button. We offer this functionality to help generate interest in our Website and content and to permit you to recommend content to your contacts. You should be aware that sharing through such functionality may result in information being collected by the applicable social media network and possibly being made publicly available (for example, through a search engine). Any such information collection would be subject to such third party social media network's privacy policy.
  • Your information may also be shared to parties who support our business, such as professional advisors as well as web-hosting providers, analytics providers and other information technology providers.
  • Any court, governmental authority, law enforcement agency or other third party where we believe disclosure is necessary to comply with a legal or regulatory obligation, or otherwise to protect our rights, the rights of any third party or individuals' personal safety, or to detect, prevent, or otherwise address fraud, security or safety issues.
  • To our affiliated entities and in connection with the sale, assignment or other transfer of our company or our business.

How We Protect Your Information

JD Supra takes reasonable and appropriate precautions to insure that user information is protected from loss, misuse and unauthorized access, disclosure, alteration and destruction. We restrict access to user information to those individuals who reasonably need access to perform their job functions, such as our third party email service, customer service personnel and technical staff. You should keep in mind that no Internet transmission is ever 100% secure or error-free. Where you use log-in credentials (usernames, passwords) on our Website, please remember that it is your responsibility to safeguard them. If you believe that your log-in credentials have been compromised, please contact us at

Children's Information

Our Website and Services are not directed at children under the age of 16 and we do not knowingly collect personal information from children under the age of 16 through our Website and/or Services. If you have reason to believe that a child under the age of 16 has provided personal information to us, please contact us, and we will endeavor to delete that information from our databases.

Links to Other Websites

Our Website and Services may contain links to other websites. The operators of such other websites may collect information about you, including through cookies or other technologies. If you are using our Website or Services and click a link to another site, you will leave our Website and this Policy will not apply to your use of and activity on those other sites. We encourage you to read the legal notices posted on those sites, including their privacy policies. We are not responsible for the data collection and use practices of such other sites. This Policy applies solely to the information collected in connection with your use of our Website and Services and does not apply to any practices conducted offline or in connection with any other websites.

Information for EU and Swiss Residents

JD Supra's principal place of business is in the United States. By subscribing to our website, you expressly consent to your information being processed in the United States.

  • Our Legal Basis for Processing: Generally, we rely on our legitimate interests in order to process your personal information. For example, we rely on this legal ground if we use your personal information to manage your Registration Data and administer our relationship with you; to deliver our Website and Services; understand and improve our Website and Services; report reader analytics to our authors; to personalize your experience on our Website and Services; and where necessary to protect or defend our or another's rights or property, or to detect, prevent, or otherwise address fraud, security, safety or privacy issues. Please see Article 6(1)(f) of the E.U. General Data Protection Regulation ("GDPR") In addition, there may be other situations where other grounds for processing may exist, such as where processing is a result of legal requirements (GDPR Article 6(1)(c)) or for reasons of public interest (GDPR Article 6(1)(e)). Please see the "Your Rights" section of this Privacy Policy immediately below for more information about how you may request that we limit or refrain from processing your personal information.
  • Your Rights
    • Right of Access/Portability: You can ask to review details about the information we hold about you and how that information has been used and disclosed. Note that we may request to verify your identification before fulfilling your request. You can also request that your personal information is provided to you in a commonly used electronic format so that you can share it with other organizations.
    • Right to Correct Information: You may ask that we make corrections to any information we hold, if you believe such correction to be necessary.
    • Right to Restrict Our Processing or Erasure of Information: You also have the right in certain circumstances to ask us to restrict processing of your personal information or to erase your personal information. Where you have consented to our use of your personal information, you can withdraw your consent at any time.

You can make a request to exercise any of these rights by emailing us at or by writing to us at:

Privacy Officer
JD Supra, LLC
10 Liberty Ship Way, Suite 300
Sausalito, California 94965

You can also manage your profile and subscriptions through our Privacy Center under the "My Account" dashboard.

We will make all practical efforts to respect your wishes. There may be times, however, where we are not able to fulfill your request, for example, if applicable law prohibits our compliance. Please note that JD Supra does not use "automatic decision making" or "profiling" as those terms are defined in the GDPR.

  • Timeframe for retaining your personal information: We will retain your personal information in a form that identifies you only for as long as it serves the purpose(s) for which it was initially collected as stated in this Privacy Policy, or subsequently authorized. We may continue processing your personal information for longer periods, but only for the time and to the extent such processing reasonably serves the purposes of archiving in the public interest, journalism, literature and art, scientific or historical research and statistical analysis, and subject to the protection of this Privacy Policy. For example, if you are an author, your personal information may continue to be published in connection with your article indefinitely. When we have no ongoing legitimate business need to process your personal information, we will either delete or anonymize it, or, if this is not possible (for example, because your personal information has been stored in backup archives), then we will securely store your personal information and isolate it from any further processing until deletion is possible.
  • Onward Transfer to Third Parties: As noted in the "How We Share Your Data" Section above, JD Supra may share your information with third parties. When JD Supra discloses your personal information to third parties, we have ensured that such third parties have either certified under the EU-U.S. or Swiss Privacy Shield Framework and will process all personal data received from EU member states/Switzerland in reliance on the applicable Privacy Shield Framework or that they have been subjected to strict contractual provisions in their contract with us to guarantee an adequate level of data protection for your data.

California Privacy Rights

Pursuant to Section 1798.83 of the California Civil Code, our customers who are California residents have the right to request certain information regarding our disclosure of personal information to third parties for their direct marketing purposes.

You can make a request for this information by emailing us at or by writing to us at:

Privacy Officer
JD Supra, LLC
10 Liberty Ship Way, Suite 300
Sausalito, California 94965

Some browsers have incorporated a Do Not Track (DNT) feature. These features, when turned on, send a signal that you prefer that the website you are visiting not collect and use data regarding your online searching and browsing activities. As there is not yet a common understanding on how to interpret the DNT signal, we currently do not respond to DNT signals on our site.

Access/Correct/Update/Delete Personal Information

For non-EU/Swiss residents, if you would like to know what personal information we have about you, you can send an e-mail to We will be in contact with you (by mail or otherwise) to verify your identity and provide you the information you request. We will respond within 30 days to your request for access to your personal information. In some cases, we may not be able to remove your personal information, in which case we will let you know if we are unable to do so and why. If you would like to correct or update your personal information, you can manage your profile and subscriptions through our Privacy Center under the "My Account" dashboard. If you would like to delete your account or remove your information from our Website and Services, send an e-mail to

Changes in Our Privacy Policy

We reserve the right to change this Privacy Policy at any time. Please refer to the date at the top of this page to determine when this Policy was last revised. Any changes to our Privacy Policy will become effective upon posting of the revised policy on the Website. By continuing to use our Website and Services following such changes, you will be deemed to have agreed to such changes.

Contacting JD Supra

If you have any questions about this Privacy Policy, the practices of this site, your dealings with our Website or Services, or if you would like to change any of the information you have provided to us, please contact us at:

JD Supra Cookie Guide

As with many websites, JD Supra's website (located at (our "Website") and our services (such as our email article digests)(our "Services") use a standard technology called a "cookie" and other similar technologies (such as, pixels and web beacons), which are small data files that are transferred to your computer when you use our Website and Services. These technologies automatically identify your browser whenever you interact with our Website and Services.

How We Use Cookies and Other Tracking Technologies

We use cookies and other tracking technologies to:

  1. Improve the user experience on our Website and Services;
  2. Store the authorization token that users receive when they login to the private areas of our Website. This token is specific to a user's login session and requires a valid username and password to obtain. It is required to access the user's profile information, subscriptions, and analytics;
  3. Track anonymous site usage; and
  4. Permit connectivity with social media networks to permit content sharing.

There are different types of cookies and other technologies used our Website, notably:

  • "Session cookies" - These cookies only last as long as your online session, and disappear from your computer or device when you close your browser (like Internet Explorer, Google Chrome or Safari).
  • "Persistent cookies" - These cookies stay on your computer or device after your browser has been closed and last for a time specified in the cookie. We use persistent cookies when we need to know who you are for more than one browsing session. For example, we use them to remember your preferences for the next time you visit.
  • "Web Beacons/Pixels" - Some of our web pages and emails may also contain small electronic images known as web beacons, clear GIFs or single-pixel GIFs. These images are placed on a web page or email and typically work in conjunction with cookies to collect data. We use these images to identify our users and user behavior, such as counting the number of users who have visited a web page or acted upon one of our email digests.

JD Supra Cookies. We place our own cookies on your computer to track certain information about you while you are using our Website and Services. For example, we place a session cookie on your computer each time you visit our Website. We use these cookies to allow you to log-in to your subscriber account. In addition, through these cookies we are able to collect information about how you use the Website, including what browser you may be using, your IP address, and the URL address you came from upon visiting our Website and the URL you next visit (even if those URLs are not on our Website). We also utilize email web beacons to monitor whether our emails are being delivered and read. We also use these tools to help deliver reader analytics to our authors to give them insight into their readership and help them to improve their content, so that it is most useful for our users.

Analytics/Performance Cookies. JD Supra also uses the following analytic tools to help us analyze the performance of our Website and Services as well as how visitors use our Website and Services:

  • HubSpot - For more information about HubSpot cookies, please visit
  • New Relic - For more information on New Relic cookies, please visit
  • Google Analytics - For more information on Google Analytics cookies, visit To opt-out of being tracked by Google Analytics across all websites visit This will allow you to download and install a Google Analytics cookie-free web browser.

Facebook, Twitter and other Social Network Cookies. Our content pages allow you to share content appearing on our Website and Services to your social media accounts through the "Like," "Tweet," or similar buttons displayed on such pages. To accomplish this Service, we embed code that such third party social networks provide and that we do not control. These buttons know that you are logged in to your social network account and therefore such social networks could also know that you are viewing the JD Supra Website.

Controlling and Deleting Cookies

If you would like to change how a browser uses cookies, including blocking or deleting cookies from the JD Supra Website and Services you can do so by changing the settings in your web browser. To control cookies, most browsers allow you to either accept or reject all cookies, only accept certain types of cookies, or prompt you every time a site wishes to save a cookie. It's also easy to delete cookies that are already saved on your device by a browser.

The processes for controlling and deleting cookies vary depending on which browser you use. To find out how to do so with a particular browser, you can use your browser's "Help" function or alternatively, you can visit which explains, step-by-step, how to control and delete cookies in most browsers.

Updates to This Policy

We may update this cookie policy and our Privacy Policy from time-to-time, particularly as technology changes. You can always check this page for the latest version. We may also notify you of changes to our privacy policy by email.

Contacting JD Supra

If you have any questions about how we use cookies and other tracking technologies, please contact us at:

- hide

This website uses cookies to improve user experience, track anonymous site usage, store authorization tokens and permit sharing on social media networks. By continuing to browse this website you accept the use of cookies. Click here to read more about how we use cookies.