340B Health Statement on the Closing Loopholes for Orphan Drugs Act
340B Health appreciates Reps. Peter Welch (D-Vt.) and Morgan Griffith's (R-Va.) bipartisan bill to limit the 340B drug discount program's orphan drug exclusion.
Many rural hospitals are in poor financial health and struggling to survive. Nationwide, more than 70 rural hospitals have closed since 2010 and almost 700 more are in danger of going under. Letting these hospitals get 340B drug discounts on orphan drugs when they use the drugs for non-orphan diseases or conditions could help the hospitals keep their doors open and enable patients to access affordable medications.
Orphan drugs are among the most expensive drugs on the market. Many can cost patients up to $300,000 per year or more. And they are often used for non-orphan purposes. Rituxan, the world's top selling cancer drug, has an orphan designation for a type of non-Hodgkin's lymphoma, for example. But it also is a first-line treatment for rheumatoid arthritis. More and more orphan drugs are coming on the market. Almost half of the new drugs approved by the FDA in 2015 had orphan designations.
Contact: Jeff Davis (jeff.davis@340bhealth.org or 202-552-5867)