CBO Report: R&D Costs Do Not Influence Pharma Pricing

A prescription drug's sunk R&D costs do not influence the drug's price, the Congressional Budget Office found.

The pharmaceutical industry’s spending on research and development as a proportion of its revenue dwarfs virtually all other manufacturing sectors, but those costs do not really impact pricing, according to a new analysis by the Congressional Budget Office.

Drugmakers

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Pharma’s Plans to Rebuild Health Care Include Overhauling 340B

New reports from drugmaker Janssen (left) and PhRMA recommend taking 340B drug discounts away from hospitals and contract pharmacies and giving them to patients.

New reports from pharmacy giant Janssen and Pharmaceutical Research and Manufacturers of America (PhRMA) suggest that the pharma sector could be making the 340B program an even bigger target than it has been in recent years.

Janssen’s report is

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340B Sales Grew 18% from 2019 to 2020, Drug Industry Consulting Firm Says

Growth in 340B sales is being driven by specialty products and use of mail-order contract pharmacy, pharmacy consulting firm IQVIA says.

Drug industry consulting and contract research firm IQVIA reports that prescription drug sales at 340B-discounted prices grew 18.1% year-on-year from 2019 to 2020.

“Astonishingly, this represents an acceleration in 340B growth versus 2019,” the firm said in a March

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340B Hospitals More Likely to Make Medicine More Accessible, Study Finds

University of Illinois Chicago researchers found that 340B hospitals provide significantly more medication access services such as discharge prescriptions to patients at bedside than comparably sized non-340B hospitals. | Shutterstock

340B hospitals provide “a significantly higher average number” of medication access (MA) services—such as free or discounted drugs or free delivery—than comparably sized non-340B hospitals, a new academic study shows.

The study was conducted by the University of Illinois Chicago

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Study in Health Affairs Could Reignite Debate Over Some 340B Hospitals Charity Care

Researchers at The Johns Hopkins University found that nonprofit hospitals spend significantly less on charity care than government or for-profit hospitals.

A study published online by Health Affairs yesterday on nonprofit hospitals’ provision of charity care could renew drug manufacturers’ calls for more control over those hospitals’ participation in the 340B program.

Professors and scientists at The Johns Hopkins University used

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Survey: Pharma’s 340B Contract Pharmacy Actions are Putting the Squeeze on Hospitals

Nearly all (97 percent) of all 340B hospitals in a recent survey said they are impacted by drug manufacturers' curbs on contract pharmacy use. | Shutterstock

340B hospitals are under significant pressure due to drug manufacturers ending 340B discounts on drugs dispensed by contract pharmacies, hospital advocacy group 340B Health says in its latest annual member survey.

Nearly 500 hospitals that are members of 340B

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Medicare’s 340B Drug Reimbursement Cuts in 2019 Were Exacerbated by Change in Drugs’ Payment Status

A change in Medicare Part B payment status for "an unusually high" number of drugs in 2019 led to "substantially" lower payments to 340B hospitals, congressional Medicare advisers said this week.

Medicare Part B drug payments to 340B hospitals “declined substantially” in 2019 because the payment status of “an unusually high number of drugs” changed that year, congressional Medicare advisers said in a report yesterday.

The change—from “pass-through status” to “separately

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Orphan Drug Study’s Authors Say Findings May Warrant Lifting 340B Exemption

Humira, one of the 15 partial orphan drugs examined in the new study in Health Affairs, had $13.7 billion in sales in 2018.

More than 70 percent of U.S. spending on top-selling “partial orphan drugs”—drugs for rare diseases that also are approved to treat common diseases—is for non-orphan indications, a study in latest edition of Health Affairs concludes.

Makers of partial orphan drugs

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PhRMA Slams 340B Hospitals in Report, AHA Returns Fire

The AHA contests PhRMA's conclusion in its new report that 340B program growth drives up drug costs for patients and employers.

The ability to generate profits through the 340B program prompts hospitals to buy physician practices and shift delivery of care to more costly hospital outpatient settings, driving up drug costs for patients and employers, Pharmaceutical Research and Manufacturers of America

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Half of Health Care Execs Surveyed Expect Biden to Act on Pharma’s 340B Pricing Denials

Half of health care industry executives surveyed last month think President Biden will take action against drug manufacturers that have stopped offering 340B pricing on their products. | Source: Advis

Half (50 percent) of a sample of health care industry C-suite executives surveyed last month expect the Biden administration to “formally obligate drug manufacturers to offer 340B pricing,” consulting firm Advis reports in its first health care industry leadership survey

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