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340B Plan B: Pharma Pivots To Rebate Pricing Model After Pharmacy Restrictions Fall Short

 
• By Cathy Kelly

The manufacturer dispute with hospitals and US agency tasked with overseeing the outpatient drug discount program is entering a new phase.

Manufacturers are pivoting to back-end rebates in the 340B program. (Shutterstock)
Key Takeaways
  • Drug manufacturers are shifting 340B price concessions for some products upfront counts to back-end rebates, despite HRSA opposition.
  • Some companies are limiting their new rebate models only to products with Medicare negotiated prices for now.
  • Regulatory consultant Bill Sarraille predicted more rebate-model announcements and litigation are coming in 2025.

Pharmaceutical manufacturers are moving to a new way of containing the 340B drug discount program after their three-year attempt to restrict discounts to contract pharmacies apparently failed to achieve the...

Johnson & Johnson, Sanofi, Eli Lilly and Bristol Myers Squibb...

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