Small Biotech Innovation Act

This bill creates an exception for certain small biotech companies from Medicare's drug price negotiation program starting in 2029. It applies to "research and development-intensive small biotech manufacturers" that invest a specific percentage (30%-70%) of their net revenue in R&D over the prior three years and have 5 or fewer qualifying single-source drugs. To qualify, companies must annually submit financial data to Medicare proving their R&D spending meets the threshold. This directly affects small U.S.-based biotech firms developing innovative drugs, allowing them to avoid price negotiations under Medicare for qualifying products.