Johnson & Johnson Aims New Policy For Hospital Payments Under 340B Drug Discount Program Related To Its Flagship Blood Thinner And Arthritis Drugs

On Friday, Johnson & Johnson JNJ announced that it would implement significant changes to offering 340B pricing for its popular drugs, Stelara and Xarelto.

Stelara (ustekinumab) is indicated for moderate to severe psoriasis, active psoriatic arthritis, Crohn’s disease, and ulcerative colitis.

Xarelto (rivaroxaban) is a blood thinner that treats and helps prevent blood clots related to certain conditions involving the heart and blood vessels.

Also Read: Medicare Costs For Johnson & Johnson’s Psoriasis Drug Stelara Double When Obtained at Pharmacies.

Beginning October 15, disproportionate share hospitals (DSHs) participating in the 340B Drug Pricing Program must buy these drugs at full price and submit data to Johnson & Johnson.

Once the drug’s 340B status is verified, the hospitals will receive a rebate reflecting the 340B discount.

The pharma giant said the policy shall take effect in approximately two months, on October 15, and the company will provide an additional grace period for rebate claims submission.

DSH Covered Entities will have over six months to adjust to the new policy.

In a statement, AHA said that it has informed Johnson & Johnson that its rebate model is inconsistent with the 340B statute and that the Secretary of the Department of Health and Human Services has not approved this model.

HRSA further informed the AHA that it would take appropriate action as warranted.

The drugmaker outlined that under the program, covered entities must submit rebate claims data within 45 days of dispensing the drug. However, a grace period allows for claims submissions outside the 45-day window through March 10, 2025.

“We believe this update will significantly improve program integrity while at the same time enabling covered entities to obtain the 340B price on eligible 340B sales,” Johnson & Johnson said in its notice.

Johnson & Johnson’s Imbruvica is among the drugs to be a part of the first round of drug price negotiation.

Price Action: JNJ stock is up 0.49% at $164.93 at last check Monday.

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