J&J to restrict 340B discounts for 29 drugs

Johnson & Johnson will stop offering 340B discounts to safety-net hospitals effective May 2 if providers do not submit certain patient claims data, the drugmaker said March 21.

"We believe that this policy will also improve 340B program integrity and compliance," Johnson & Johnson said in its announcement. "Unfortunately, despite years of efforts by Johnson & Johnson Health Care Systems and other stakeholders to address 340B program integrity and compliance concerns, the program has been seriously challenged by contract pharmacy transactions that are not required by or consistent with the statute."

The policy covers 29 of Johnson & Johnson's bestselling drugs, according to advocacy group 340B Health. 

"Today's announcement by Johnson & Johnson, the world’s biggest drug company, to restrict 340B discount pricing for safety-net hospitals flies in the face of the statute written by Congress and the warnings of both the Trump and Biden administrations," Maureen Testoni, CEO and president of 340B Health, said in a statement. "By limiting access to mandatory price discounts, J&J will harm the healthcare safety net and the millions of Americans with low incomes who rely on it for their care."

This announcement makes Johnson & Johnson the 16th drugmaker to limit 340B discounts to safety-net hospitals for drugs dispensed at community-based pharmacies.

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