Beginning March 19, 2024, Amgen will apply its contract pharmacy restriction policy to all covered entity types, including previously exempted federal grantees.  Amgen’s policy applies to self-administered Amgen products—Repatha®, Enbrel®, Otezla®, Aimovig®, Tezspire® and Amjevita®.  For grantees, the following restrictions will take effect March 19:

Grantees Without an In-House Pharmacy: A grantee that does not have an in-house pharmacy may designate a single contract pharmacy for 340B drug delivery if the HRSA registered contract pharmacy is within 40 miles of the grantee site.  A grantee may be allowed to designate a contract pharmacy farther than 40 miles if it does not have an in-house pharmacy and there is no contract pharmacy within 40 miles capable of dispensing Amgen drugs.

Grantees With an In-House Pharmacy: If a federal grantee does have an in-house pharmacy, it may designate a single contract pharmacy for 340B drug delivery if (1) the HRSA registered contract pharmacy is within 40 miles of the grantee site and (2) the federal grantee provides claims data in 340B ESP for the in-house pharmacy and the designated contract pharmacy.

The policy treats all contract pharmacies the same, whether or not they are under common ownership with the covered entity.

Covered entities should make their respective contract pharmacy designations by March 5, 2024 in order for those designations to take effect before the new policy becomes effective.  If a designation is made after March 5, the federal grantee should allow 10 business days for the designation to take effect.  Designations can be made at Second Sight Solutions (340besp.com).

The Powers 340B team will continue to monitor manufacturers’ restrictive contract pharmacy policies.