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Sanofi plans to change hospital drug-discount program
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Sanofi plans to change hospital drug-discount program
Nov 22, 2024 2:30 PM

Nov 22 (Reuters) - French drugmaker Sanofi

plans to change its policy on how it gives discounts to certain

U.S. hospitals that serve low-income and uninsured patients, the

company said on Friday.

Sanofi's new plan will require institutions to provide

pharmacy and medical claims information, such as the drug's

order or a patient's hospital visit, before receiving federally

mandated discounts under a program known as 340B.

Under Sanofi's new plan, certain hospitals covered by the

340B program would order drugs at full price from a wholesaler.

"The changes we are making are consistent with the 340B

program's mission ... helping to eliminate prohibited duplicated

discounts and diversion of 340B drugs away from eligible

patients," said Sanofi.

According to the Wall Street Journal, which was the first to

report the matter, Sanofi plans to send a letter, that was

reviewed by the publication, to hospitals outlining its new

model.

Last week, drugmakers Eli Lilly ( LLY ) and Johnson&Johnson ( JNJ )

filed cases centered around the 340B program against

U.S. federal health agencies.

Lilly sued the Health Resources and Services Administration

(HRSA) over allegedly blocking the company's plan to change the

way it offers drug discounts to hospitals. Lilly said that its

program is designed to pay cash directly to 340B covered

entities every week.

J&J, which sued the Health and Human Services Department,

accuses the agency of blocking its plan to sell its psoriasis

treatment Stelara and blood thinner Xarelto to some hospitals at

full price before applying drug rebates.

The 340B program, in which drugmakers provide discounts to

eligible healthcare providers that serve low-income populations,

has been the focus of broad legal scrutiny over the years.

Drugmakers must participate in the program to receive funds from

government health insurance programs like Medicare and Medicaid.

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