(Reuters) -French drug manufacturer Sanofi (NASDAQ:) plans to change its policy on how it provides discounts to certain U.S. hospitals that serve low-income and uninsured patients, the company said Friday.
Sanofi’s new plan requires institutions to provide pharmacy and medical claims information, such as the drug order or a patient’s hospital visit, before receiving federally mandated rebates under a program known as 340B.
Under Sanofi’s new plan, certain hospitals covered by the 340B program would order drugs at full price from a wholesaler.
“The changes we are making are consistent with the mission of the 340B program… to help eliminate prohibited duplicate discounts and divert 340B drugs away from eligible patients,” Sanofi said.
According to the Wall Street Journal, which first reported the matter, Sanofi plans to send a letter, reviewed by the publication, to hospitals outlining the new model.
Last week, drugmakers Eli Lilly (NYSE:) and Johnson&Johnson (NYSE:) has filed cases involving the 340B program against US federal health agencies.
Lilly has sued the Health Resources and Services Administration (HRSA) for allegedly blocking the company’s plan to change the way it offers drug rebates to hospitals. Lilly said its program is designed to pay cash directly to 340 billion covered entities each week.
J&J, which has sued the Health and Human Services Department, accuses the agency of blocking its plan to sell its psoriasis treatment Stelara and blood thinner Xarelto to some hospitals at full price before drug rebates are applied.
The 340B program, in which drugmakers provide rebates to eligible health care providers serving low-income populations, has been the focus of wide legal scrutiny in recent years. Drug manufacturers must participate in the program to receive money from government health insurance programs such as Medicare and Medicaid.
