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This bill amends the Social Security Act to create an exception from Medicare's drug price negotiation program for qualifying drugs manufactured by research and development-intensive small biotech companies. Starting in 2029, small biotech manufacturers with five or fewer qualifying drugs that invest a specified percentage of net revenue in research and development (ranging from 30% to 70% depending on the number of drugs) would be exempt from Medicare price negotiations. Manufacturers must annually apply and certify their R&D spending to qualify, and the exception terminates if the company is acquired by a manufacturer that does not meet the definition.
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