340B Rx Program Under Attack

Following in the footsteps of AstraZeneca, Eli Lily announced last week that covered entities will not be eligible to purchase their products at the 340B ceiling price for shipment to a contract pharmacy. In a notice to covered entities, Eli Lilly states the company is limiting distribution on all of its products to 340B contract pharmacies starting the date of the letter - September 1 - with the exception of insulin, which it will provide 340B pricing only if the contract pharmacy does not mark up the drug or otherwise charge a dispensing fee. HRSA is now reportedly investigating whether these policies that restrict access to 340B pricing at contract pharmacies violates the 340B statue and whether sanctions may apply. For the Eli Lilly notice, click here, and for more on HRSA's actions, click here.

• House Energy and Commerce Committee Democratic Leadership wrote to HHS Secretary Alex Azar to express concern following the drug manufacturers' actions, "It is critical that the Administration maintains program integrity to ensure this care is not interrupted," click here.