Biogen wordmark on building facade
Drugmaker Biogen recently added a third drug to its 340B contract pharmacy restrictions for hospitals.

Breaking: Biogen Announces 340B Contract Pharmacy Restrictions

Biopharmaceutical manufacturer Biogen yesterday became the 19th prescription drug company to announce conditions on 340B pricing when covered entities contract with outside pharmacies.

Massachusetts-based Biogen posted a Dec. 12 letter to entities and an accompanying FAQ describing its new policy on drug industry contractor 340B ESP’s website. Its pricing limitation apply only Avonex and Plegridy, both of them injectable treatments for relapsing multiple sclerosis. Biogen reported $1.5 billion in revenue on the two medicines in 2021 on $10.9 billion in total global revenue.

The policy takes effect Feb. 1 and applies to hospital covered entities only; grantee entities are exempt.

Biogen will let hospital entities without an in-house pharmacy designate a single contract pharmacy location to receive purchases of the two medicines. Contract pharmacies that are wholly owned by a 340B hospitals or have common ownership with a 340B-eligible health system will remain eligible for bill to / ship to replenishment orders.

Biogen is using 340B ESP only as its agent for hospitals to register their single contract pharmacy location and/or wholly owned contract pharmacy exemptions. There is no option for hospitals to continuing having multiple contract pharmacy arrangements by uploading relevant 340B claims data to 340B ESP.

Biogen said in a statement to 340B Report this morning, “Biogen will be altering our 340B distribution approach for Avonex and Plegridy. Federal grantees will not be affected, and any 340B covered entity that does not have an in-house pharmacy will be able to designate a single contract pharmacy location to receive its 340B purchases. Contract pharmacies that are wholly owned by a 340B hospital or have common ownership with a 340B-eligible health system will also generally not be impacted. If a hospital covered entity is granted an exemption for its wholly or commonly owned contract pharmacy(ies), it may not also designate an independent contract pharmacy. Aside from these entities, as of February 1, 2023, Biogen will distribute Avonex and Plegridy purchased at the 340B price only to locations registered as a 340B covered entity or a child site location. Biogen supports the mission of the 340B program and will continue to provide appropriate pricing to all 340B covered entities in accordance with the 340B statute.”

Bausch Health in July was the last manufacturer to announce conditions on 340B pricing when contract pharmacies are involved. Its policy took effect Aug. 1.

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