Genentech Should Rescind Costly Cancer Drug Move
FOR IMMEDIATE RELEASE
Contact: Randy Barrett
(202) 536-2285
randy.barrett@340bhealth.org
Genentech Should Rescind Costly Cancer Drug Move
October 23, 2014—340B Health has asked Genentech to rescind immediately its decision to sell the cancer drugs Avastin, Herceptin, and Rituxan through specialty distributors.
“The move will cost hospitals and their patients hundreds of millions of dollars at a time when the cost of cancer drugs is already unsustainable,” said Ted Slafsky, 340B Health President and Chief Executive Officer.
The three drugs are the leading infused chemotherapy medications on the market and the company has vaguely justified the move as needed for patient safety. “The change will not, to our knowledge, make patients any safer and, in fact, could cause delays in their care. It also will significantly increase safety-net hospitals' costs,” writes 340B Health General Counsel Maureen Testoni in a letter to Genentech CEO of North American Operations Ian Clark.
The trade group argues that Genentech has sold the medications through traditional wholesalers for years, which suggests that the existing distribution channels were sufficient to ensure their safety.
It is estimated that moving Avastin, Herceptin, and Rituxan from standard wholesale to specialty distribution will cost hospitals around $250 million annually in lost discounts. Hospitals that serve high volumes of low-income patients will fare the worst due to their already limited financial resources.
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340B Health is an association of more than 1,000 hospitals. We are the leading advocate and resource for those providers who serve their communities through participation in the 340B drug pricing program. For more information, visit www.340bhealth.org.
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