STATEMENT ON GILEAD RESTRICTING 340B DISCOUNTS THROUGH COMMUNITY-BASED PHARMACIES
WASHINGTON, D.C.— The drug company Gilead has announced it will stop offering 340B drug pricing program discounts to safety-net hospitals, health centers, and clinics if the providers do not submit patient claims data that the company is demanding. When the policy takes effect May 2, Gilead will become the 15th company to date to impose 340B pricing restrictions on drugs dispensed at community pharmacies. The company’s policy initially targets discounts on its brand-name hepatitis C drugs Epclusa, Harvoni, Sovaldi, and Vosevi. These are some of the most costly and top-selling drugs used to treat the 4.7 million patients in the U.S. who are living with hepatitis C.
The following statement is attributed to 340B Health President and CEO Maureen Testoni:
“Gilead’s actions threaten the health of patients, including the millions of people who are living with or at risk of being infected with hepatitis C. To avoid paying voluntary rebates on commercial claims to pharmacy benefit managers (PBMs) and health insurers, Gilead is restricting 340B discounts in a way that both the Trump and Biden administrations have called unlawful. These actions will further weaken the U.S. health care safety net, harming hospitals, health centers, and clinics that use 340B resources to provide comprehensive care for patients living with hepatitis C and other chronic diseases.”
“In 2021, Gilead earned $27 billion in revenue, including nearly $2 billion from its hepatitis C products alone. Gilead also manufactures the most-prescribed drugs for HIV/AIDS treatment and prevention.”
“To date, 15 drug companies have imposed or announced unlawful restrictions on 340B discounts. They include some of the world's largest and most profitable drugmakers. These limits reduce resources available to safety-net providers and increase the size of drug company profits. The biggest losers in this dispute are low-income and rural Americans who rely on the health care safety net for care when they are sick and preventive services to keep them healthy.”
“Two federal courts have ruled these types of restrictions are unlawful. This behavior must stop.”