Covered entities' monthly 340B savings on Sanofi products dropped from $54.2 million just before the company limited discounts on drugs shipped to contract pharmacies to about $5 million within two months, federal lawyers told a judge last week.

Pharma’s 340B Contract Pharmacy Limits Are Costing Providers $3.2 Billion a Year, DOJ Tells Court

Hospitals, health centers, and clinics are losing a projected $3.2 billion a year in 340B program savings due to six drug manufacturers’ denials of 340B pricing on drugs shipped to contract pharmacies, the federal government said in a court filing last week.

340B covered entities’ total monthly drug discount program savings fell from $357 million in July 2020, just before drug companies began their pricing restrictions, to $92 million in January 2021, the U.S. Justice Department said in a June 16 brief in drug maker Sanofi’s suit challenging the U.S. Health and Human Services Department’s (HHS) 340B contract pharmacy requirements. Total prescription drug units sold at 340B price fell from 10.5 million per month prior to manufacturers’ restrictions to 2.9 million in January 2021, DOJ said.

Hospitals, health centers, and clinics are losing a projected $3.2 billion a year in 340B program savings due to six drug manufacturers’ denials of 340B pricing on drugs shipped to contract pharmacies, the federal government said in a court filing last week.

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