AHF: J&J Retreats From Its Scheme to Gut 340B Drug Pricing Program

The following is a statement from AIDS Healthcare Foundation (AHF):

Thanks to a clear warning (see U.S. Health Resources and Services Administration letter [HRSA] Response to J&J's September 19, 2024 Letter) from the U.S government that J&J’s plan to destroy the 340B Drug Pricing Program is illegal, the drug industry giant sent a letter raising the white flag of retreat today (See J&J’s September 30, 2024 letter here).

J&J’s illegal scheme would have denied required 340B discounts to eligible healthcare safety net covered entities and instead provided rebates if and when it chose to do so. J&J’s scheme may or may not have reimbursed providers at a later date, cheating safety net providers, making every claim subject to dispute and protracted payment. J&J’s scheme violates the law and AHF is pleased that HRSA has swiftly responded.

J&J's hypocritical blather about making 340B “sustainable” belies its actions. Multiple J&J annual price increases aren’t sustainable. J&J’s flurry of extra-legal restrictions on contract pharmacies isn’t sustainable.

J&J’s retreat shows its "340B is not sustainable" argument is nonsense and should be disregarded whenever it is raised. Drug companies will not quit the lucrative taxpayer-funded Medicaid and Medicare drug markets.

AIDS Healthcare Foundation (AHF), the world’s largest HIV/AIDS healthcare organization, provides cutting-edge medicine and advocacy to more than 2.1 million individuals across 47 countries, including the U.S. and in Africa, Latin America/Caribbean, the Asia/Pacific Region, and Eastern Europe. To learn more about AHF, visit us online at AIDShealth.org, find us on Facebook, and follow us on Instagram, Twitter, and TikTok.

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