HRSA Threatens to Sanction J&J Absent Withdrawal of 340B Rebate Plan

On September 17, the Health Resources and Services Administration (HRSA), which administers the prescription drug discount program established under Section 340B of the federal Public Health Service Act, sent a letter to pharmaceutical manufacturer Johnson & Johnson (J&J), threatening to impose sanctions unless J&J ceases implementation of its recently announced plan to stop offering 340B discounts to disproportionate share hospitals at the time of purchase on two of its drugs and to instead…
By: Manatt, Phelps & Phillips, LLP