The AIDS Healthcare Foundation has published a statement commending the Biden administration for holding "shameless, greedy drug companies accountable for illegally denying price discounts on prescription drugs to nonprofit clinics and hospitals because they were using contract pharmacies."

In its press release last week, Ged Kensela, the AHF spokesperson, lauded the U.S. Health Resources Services Administration for sending six letters informing AstraZeneca, Eli Lilly, Novartis, Novo Nordisk, Sanofi and United Therapeutics their practices were unacceptable. The letters advised the companies "that they are in direct violation of the statute establishing the 340B Drug Pricing Program."

“Thousands of non-profit providers depend on the 340B program to keep their doors open to serve vulnerable populations. said Tom Myers, General Counsel and Chief of Public Affairs for AHF. He added, "340B costs taxpayers nothing and stretches federal programs that strengthen the healthcare safety net, already severely stressed by a system that enriches the for-profit pharmaceutical industry.”

As reported in a Politico Pro Health Care report discussing the administration’s action yesterday to rein in the rogue drug companies, writing: “HHS set a June 1 deadline for the drugmakers to resume payments to contract pharmacies participating in the 340B discount program, which helps people with low incomes access medications. Under 340B, some hospitals lacking in-house pharmacies contract with outside firms to dispense medicines on their behalf — and the pharmaceutical industry has long been unhappy that discounts have been extended to those companies.”

Myers went on to say that “the pharmaceutical industry tries every day to strangle these efforts.  However, the war is not over. We hope the administration takes the battle to other 340B predators, such as pharmacy benefit managers and private insurance companies that are trying to steal the 340B benefits that support safety-net clinics and rural hospitals.”


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