US SB1040

Amends the Federal Trade Commission Act to prohibit pharmaceutical "product hopping," where brand-name drug manufacturers impede generic or biosimilar competition through anticompetitive product switches

Defines two types of prohibited conduct: "hard switches" (withdrawing original drugs from the market while selling reformulated versions) and "soft switches" (taking actions that unfairly disadvantage original products relative to follow-on products)

Applies during the period from when a manufacturer receives notice of a generic/biosimilar application until 180 days after the competing product enters the market or 3 years after the follow-on product launches

Provides manufacturers an affirmative defense if they can demonstrate actions were taken for patient safety reasons, due to supply disruptions beyond their control, or for legitimate pro-competitive reasons

Grants the FTC enforcement authority including temporary and permanent injunctions, disgorgement of unjust enrichment, and restitution, with a 5-year limitations period for seeking monetary remedies