GSK Limits Its 340B Drug Discount Program

GlaxoSmithKline (GSK) has become the 14th drugmaker to limit its involvement in the 340B Drug Discount Program.

Designed to serve low-income patient populations in the U.S., the program in recent years has led to protracted fights between drugmakers and the government as drug companies complain that the use of contract pharmacies by hospitals and clinics leads to double billings and ineligible rebates.

Effective April 1, 2022, GSK will ship certain products purchased at the 340B price only to locations registered as a 340B covered entity or to a single contract pharmacy designated by the covered entity, but not to multiple contract pharmacies.

The Department of Health and Human Services (HSS) recently appealed court rulings that called into question the agency fining drugmakers who refuse to fully participate in the program.