Bayer, Serono to Limit Drug Price Discounts

Bayer and EMD Serono have joined the list of drugmakers limiting the discounts they provide to participating 340B hospitals.

While saying they support the program’s mission of ensuring that low-income patients have continued access to expensive medications, both companies will now limit 340B pricing to locations registered as 340B covered entities or to site locations affiliated with that entity.

Beginning in March, neither company will ship any new orders to contract pharmacies unless they are affiliated with federal grantees, wholly owned by a 340B hospital or have common ownership with a healthcare system.

Covered entities without an in-house pharmacy that can dispense these drugs may designate a single pharmacy, but the designee has to be registered with the Health Resources and Services Administration.

Several Bayer products will remain exempt from the new policy, while Serono’s 340B change is limited to two drugs: Rebif (interferon beta-1a) and Gonal-F (follitropin alfa for injection).