Astellas Pharma US will stop distributing Xtandi, a prostate cancer drug that costs about $160,000 each year, to 340B contract pharmacies on Sept. 1, according to a letter obtained by 340B Health.
In the letter, Astellas said its reasoning was to "uphold the integrity of the 340B program and address the risk of duplicate discounts and diversion." Safety-net hospitals without an in-house pharmacy will be allowed to order Xtandi at the discounted price through one contract pharmacy.
The drugmaker will be the 24th pharmaceutical company to curb products discounted through the federal 340B program, nonprofit organization 340B Health said July 3.
The nonprofit said the decision is "depriving hospitals of crucial resources," and it is watching two federal appeals court cases on the matter of contract pharmacies in the 340B program.