Teva Pharmaceuticals will stop shipping 36 discounted drugs to contract pharmacies July 5 because of its concerns of a diluted 340B program, according to a letter acquired by 340B Health.
The New Jersey-based drugmaker said 340B covered entity and child site locations are not affected by the new policy. 340B hospitals with an in-house pharmacy and contract pharmacies will no longer be able to order more supply for the latter, and safety-net hospitals without an in-house pharmacy can continue to use their contract pharmacies, Teva said.
"Teva remains committed to the original mission of the 340B program to provide low income and indigent patients' access to affordable medications," the drugmaker said in the letter. "At the same time, Teva has grown concerned with participation of for-profit contract pharmacies and the increase in diversion of 340B purchased medicines and duplicate discounts that has accompanied growth in contract pharmacy arrangements."
340B Health, which represents more than 1,500 hospitals and health systems part of the 340B drug discount program, denounced the decision. Maureen Testoni, president and CEO of the organization, said Teva recorded nearly $15 billion in revenues in 2022 and is now "aiming to drive its profits higher."
More than 20 other drugmakers have enacted similar policies against contract pharmacies, according to 340B Health.