Democratic Sen. Elizabeth Warren introduced legislation on Tuesday that would establish a government-run pharmaceutical manufacturer to effectively compete with the private market.

The Affordable Drug Manufacturing Act seeks to address the increasing prices of prescription drugs by injecting competition into the marketplace, consequently lowering the cost of mass-produced generic drugs. The bill would create the Office of Drug Manufacturing, which would be housed within the Department of Health and Human Services.

Warren's Idea to "Fix" the Market

Warren said adding the agency would increase competition.

"In market after market, competition is dying as a handful of giant companies spend millions to rig the rules, insulate themselves from accountability, and line their pockets at the expense of American families," Warren said in a statement. "The solution here is not to replace markets, but to fix them."