Public Statement 8/14/24

Pharma Restrictions Risk Cutting Access to Meds at Community Health Centers

COLUMBUS, Ohio – In recent weeks, two drug manufacturers implemented new restrictions on 340B contract pharmacies, risking access to vital medications for low-income and uninsured patients.

Alkermes — which manufactures drugs that treat psychiatric and neurological disorders — said that as of July 22, it would limit the distribution of 340B drugs to “locations registered as a 340B covered entity (including its child sites).” The company said it would no longer ship 340B drugs to contract pharmacies of covered entities with an in-house pharmacy. Covered entities without an in-house pharmacy may designate a single-contract pharmacy.

Similarly, Viatris — which manufactures a range of drugs including those to treat HIV, asthma, multiple sclerosis, and more — said that its Mylan Specialty and Viatris Specialty components would limit the distribution of 340B drugs to “locations registered in the 340B OPAIS database as a covered entity [or] a child site location.” As such, they will no longer ship 340B drugs to contract hospital-covered entities and community health centers (CHCs) with an in-house pharmacy.

By issuing these new restrictions with little time for contract pharmacies to move toward compliance, these drugmakers risk cutting off the supply of medications for patients across the country, including patients at community health centers like Equitas Health.

Nick Saltsman (he/him), Chief Pharmacy Executive at Equitas Health, said: “Drugmakers like Alkermes and Viatris are attempting to create obstacles for community health centers to stop them from realizing the benefits of the federal 340B Drug Pricing Program. Big Pharma should be ashamed of its blatant greed and disregard for community health programs, which play a direct role in improving healthcare outcomes for millions of patients nationwide.”

The federal 340B Drug Pricing Program requires drug makers participating in Medicaid to sell outpatient drugs at discounted prices to healthcare organizations that serve low-income and uninsured patients. Covered entities, such as Equitas Health, then reinvest pharmacy proceeds into vital healthcare programs such as primary care, specialized HIV care, behavioral health, and dentistry.

Rhea Debussy (she/her), Director of External Affairs at Equitas Health, said: “Given the important medications produced by Alkermes and Viatris, these announcements are very disheartening. Patients shouldn’t have to worry about access to affordable medications like life-saving drugs used to treat chronic illnesses.”

The federal 340B Drug Pricing Program is a critical lifeline for community health centers that deserves protection from the pharmaceutical industry’s attempts to undercut it. Equitas Health calls on our elected officials to put patients first and put a stop to Big Pharma’s growing list of unfair and unnecessary hurdles for contract pharmacies.

David Ernesto Munar (he/him), President and CEO at Equitas Health, added:

“Drug manufacturers once again are showing their willingness to prioritize profits over patient care. By chipping away at the 340B Drug Pricing Program, Big Pharma is threatening the long-term ability of community health organizations to provide the quality, affirming care that our patients deserve. Equitas Health will continue to sound the alarm about these illegal measures and demand that our elected officials move swiftly and decisively to maintain the integrity of the 340B program.”