CDMA makes private label OTC products for supermarkets and chain and local pharmacies.

OTC Drug Manufacturer Owes 340B Entities Refunds, HRSA Audit Finds

The U.S. Health Resources Services Administration (HRSA) has ordered a Michigan-based manufacturer of over-the-counter (OTC) drugs that it audited to repay 340B covered entities because it did not offer its products at the statutory ceiling price.

HRSA posted the findings of its audit of Chain Drug Marketing Association (CDMA) in April. CDMA is a Novi, Mich.-based cooperative association of pharmacy and retail businesses. It manufactures and distributes such OTC products as painkillers, allergy medications, cold medications, and antacids products under the Quality Choice brand, a private label common in supermarkets and chain and local pharmacies. Walmart offers a wide array of Quality Choice products.

HRSA’s audit found that CDMA did not offer 340B pricing to covered entities, and did not submit quarterly pricing data to the 340B Office of Pharmacy Affairs (OPA). CDMA’s corrective action plan is still pending, HRSA said.

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