Johnson & Johnson will stop offering voluntary 340B pricing on Janssen brand orphan drugs to hundreds of rural hospitals at the end of this year.

News Alert: Johnson & Johnson Ending Voluntary 340B Pricing on Orphan Drugs to Rural and Free-standing Cancer Hospitals

Drug manufacturer Johnson & Johnson will stop offering voluntary 340B pricing on Janssen brand orphan drugs to hundreds of rural hospitals at the end of this year. J&J’s decision also applies to the three free-standing cancer hospitals enrolled in 340B.

The company’s decision likely will deal a major financial blow to 340B critical access hospitals (CAHs), sole community hospitals (SCHs), and rural referral centers (RRCs). University of Vermont Health Network, for example, estimates that losing 340B pricing on Janssen orphan drugs will cost it $2 million a year. The UVM system consists of six hospitals in Vermont and upstate New York.

Drug manufacturer Johnson & Johnson will stop offering voluntary 340B pricing on Janssen brand orphan drugs to hundreds of rural hospitals at the end of this year. J&J’s decision also applies to the three free-standing cancer hospitals enrolled in 340B.

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