The 340B Program Reaches a Tipping Point: Sizing Profit Flows & Potential DisruptionDecember 7, 2020
“The 340B Drug Discount Program is at a tipping point. After a decade of advocating unsuccessfully for regulatory and legislative change, pharmaceutical manufacturers have begun to take matters into their own hands.” So begins Nephron Research’s new report that attempts to shed light on a question that we have observed obsesses pharma and pharmaceutical supply chain executives but receives little attention from pharmaceutical supply chain investors:
How much money is moving through the 340B drug discount program and what portion of the discounts provided by pharmaceutical manufacturers are retained by retail and specialty contract pharmacy operators vs passed on to 340B hospitals and clinics?
Within this 52-page report, Nephron Research’s Eric Percher and team size the 340B program, project the share of discounts flowing through the seven largest retail and specialty pharmacy operators, examine the quantity of discounts retained by pharmacies vs passed on to payors and quantify the risk to Walgreens Boots Alliance, CVS Health, Walmart, Cigna, UnitedHealth, and other supply chain participants should recent pharma manufacturer 340B discount policy changes reduce 340B contract pharmacy profit pools in 2021. email@example.com for more.