Boehringer Ingelheim (BI) is among the 23 manufacturers that currently restrict contract pharmacy relationships with covered entities. It is also the 16th manufacturer to broaden its restrictions on contract pharmacies following the Third Circuit’s decision deeming Sanofi, Novo Nordisk, and AstraZeneca’s restrictions lawful. BI’s policy now applies to all covered entities, including grantees. BI’s current policy applies only to hospitals and community health centers. Additionally, the policy now applies to all BI drugs, no longer excluding Gilotrif and Praxibind. The following restrictions become effective August 1, 2023:

• No In-House Pharmacy: Covered Entities that do not have an in-house pharmacy may designate a single contract pharmacy location for BI “primary care” products, provided that it is located within 40 miles of the parent site and is not a central fill pharmacy. They may also designate a single specialty pharmacy from BI’s limited distribution network (LDN), which may not be a central fill pharmacy, to dispense OFEV.
• Covered Entities with an In-House Pharmacy: Covered entities with an in-house pharmacy may not designate a contract pharmacy to receive primary care products, but if the in-house pharmacy is not in the LDN for OFEV, the covered entity may designate a pharmacy in the LDN under the same restrictions that apply to covered entities without an in-house pharmacy.
• Wholly and Commonly Owned Contract Pharmacies: Wholly and commonly owned pharmacies are treated like any other contract pharmacy.

Covered entities must make their designations by July 14th, 2023, for the designation to become effective by August 1st. BI states that covered entities will be required to act even if they have previously designated a contract pharmacy that qualifies under this new policy.

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