Drug manufacturer Johnson and Johnson notified the Health Resources and Services Administration (HRSA) of its decision to withdraw its proposed rebate model (PDF) for two drugs purchased through the 340B Drug Pricing Program, which was set to take effect Oct. 15 [refer to Washington Highlights, Sept. 20]. This decision followed a second letter from HRSA, sent on Sept. 27, threatening to terminate the manufacturer’s pharmaceutical pricing agreement (PPA) if it did not withdraw its rebate model by Sept. 30. Termination of a manufacturer's PPA would result in loss of coverage of its drugs through Medicaid and Medicare Part B. In its Sept. 30 response to HRSA, Johnson & Johnson reiterated its belief that the rebate model is lawful under the 340B statute and necessary to avoid duplicate discounts, but stated that it would withdraw the rebate model to avoid adverse effects to patients’ access to its drugs.
- Washington Highlights