Pfizer and GlaxoSmithKline (“GSK”) are the 13th and 14th manufacturers, respectively, to restrict 340B pricing on drugs shipped to contract pharmacies. Novo Nordisk, which previously restricted access to 340B pricing to one designated contract pharmacy, announced that covered entities may designate two contract pharmacies. Additional details about these new policies follow.
Pfizer’s Contract Pharmacy Policy
On January 28, Pfizer announced a new policy, effective March 1, 2022, related to access to 340B pricing for: (1) Xeljanz (tofacitinib), a drug used to treat arthritis and ulcerative colitis, and (2) certain oral oncology drugs, some of which had been part of Pfizer’s Defined Oncology Distribution Network (“DON”), under which Pfizer limited access to those drugs to about 20 specialty pharmacies. Grantees are exempt from the policies.
Hospitals may only access 340B pricing for Xeljanz or the designated oral oncology drugs at multiple contract pharmacies if the hospital submits contract pharmacy claims data to Second Sight Solutions’ 340B ESP™ platform. Hospitals may also access 340B pricing at in-house pharmacies or wholly owned contract pharmacies. For oral oncology drugs, any contract pharmacy must be part of Pfizer’s DON. Pfizer is also permitting hospitals that do not have an in-house pharmacy to designate a single contract pharmacy for Xeljanz and a specialty pharmacy that is part of the DON for oral oncology drugs. The oral oncology drugs that are included in this new policy are: Bosulif, Braftovi, Daurismo, Ibrance, Inlyta, Lorbrena, Mektovi, Sutent, Talzenna, Vizimpro, and Xalkori.
GSK’s Contract Pharmacy Policy
On February 14, GSK announced that, effective April 1, 2022, it will no longer provide 340B pricing on certain drugs shipped to contract pharmacies unless the hospital submits 340B claims data through the 340B ESP™ platform. Grantees are exempt from this policy. GSK’s products subject to this policy are Advair, Ventolin, Breo, Anoro, Incruse, Flovent, Arnuity, and Serevent, which are all used to treat respiratory conditions. Hospitals may continue to receive 340B pricing at an in-house pharmacy or contract pharmacies that are wholly owned or affiliated with the hospital without submitting contract pharmacy claims data to the 340B ESP™ platform.
Novo Nordisk Modifies Its Contract Pharmacy Exceptions Policy
Novo Nordisk announced on January 24 that 340B hospitals that do not wholly own an in-house specialty pharmacy may designate a specialty pharmacy to receive 340B drugs in addition to the one contract pharmacy arrangement that Novo Nordisk previously allowed. The request must be submitted to 340BInfo@novonordisk.com.
The Powers 340B Team will continue to monitor manufacturers’ restrictive 340B pricing policies and state and federal efforts to restore 340B pricing on drugs shipped to contract pharmacies.