Good Day BIO: Why we're talking about 340B

We take a deep dive on 340B programs—plus, look at the largest ever outbreak of bird flu in the UK and what Biden said yesterday about COVID-19. (724 words, 3 minutes, 37 seconds)

Why we’re talking about 340B

As the 340B program has expanded, more hospitals and pharmacies are accessing heavily discounted prescription drugs, but many are not passing the savings on to patients, says a Bio.News deep dive, which looks at how the program has gotten out of control and what we should do about it.

The background: “The program was started in 1992 with the goal of allowing hospitals and clinics that work with underserved communities to provide outpatient prescription drugs to patients at deep discounts,” explains Bio.News.

“Now, after 30 years, the program has ballooned—and morphed into a system that is proving anathema to its original intent,” continues Bio.News.

Case in point: A recent Community Oncology Alliance (OCA) report found “only two of the 49 hospitals with compliant reporting data shared cash prices, but for those we found that hospitals charge approximately 3.2 times Average Sales Price (ASP) for commercial plans and charge cash-paying patients 3.0 times ASP.”

Why we’re talking about it: Nine bills pushed by 340B grantees and community pharmacies have been enacted (so far) in state legislatures in 2022, with 44 bills introduced in 24 states this year. The legislation is described as intended to regulate discriminatory PBM reimbursement practices for 340B products, but the biopharmaceutical industry has concerns, which Bio.News details.

The bottom line: The unchecked expansion of the 340B program beyond its intended scope is setting up a system where hospitals and pharmacies make big profits, leave patients without promised discounts, and make drug manufacturers and insurers foot the bill. The political posturing will only make biotech’s already risky market even more unstable, while oversimplifying highly complex methodical market manipulations on the part of a variety of actors.

Read the whole thing.

More Health Care News: 

The Washington Post: COVID shots for young kids arrived in June. Few have received them.
“Even in places with strong pro-vaccine sentiments, few young children have received shots, including in the District, which has the highest percentage vaccinated. In D.C., barely 21 percent of children 6 months to 4 years old have received one shot, and just 7.5 percent have received both doses, according to the Centers for Disease Control and Prevention.”

UK bird flu outbreak highlights need for biotech

The UK’s largest ever outbreak of bird flu is yet another sign of the need to advance animal biotech. 

What’s happening: “The UK is in the grip of its largest ever outbreak of avian influenza, with 2.8 million poultry and captive birds having been culled so far this year,” reports The Independent, and thousands of wild birds dying, too.

What they’re saying: “It has affected our seabirds on an unprecedented scale in what is undoubtedly the worst outbreak of the virus we’ve ever seen. We estimate the numbers affected are in the hundreds of thousands,” said Martin Fowlie of the Royal Society for the Protection of Birds.

It’s a global problem,as we reported on wild birds washing up on Martha’s Vineyard earlier this summer as just one example of the worldwide bird flu epidemic.

While the risk to human health is (so far) minimal, the economic impact could be huge,costing the poultry industry tens of millions of dollars if it continues to spread.

But we have biotech to help—including using gene editing to create chicken embryos resistant to bird flu. However, we need to speed up regulatory approval and encourage consumer acceptance to get animal biotech to the market faster—and take a One Health approach to stop outbreaks in their tracks.

More Agriculture and Environment News:

Reuters: Delta Air Lines readies refinery to process biofuels
“The refinery is expected to start importing agricultural products such as soybean oil, which can be used to make a biomass-based diesel that satisfies federal blending requirements.” 

STAT News (Opinion): FDA and USDA need to get on board with the CDC about reducing antibiotic use in raising animals for food
“The overuse of antibiotics and other antimicrobials in raising farm animals for food may not be equivalent to COVID-19 and climate change as threats to human health, but it is right up there. This practice contributes to antibiotic-resistant infections, which are now a leading cause of death worldwide,” says Steven Roach of Keep Antibiotics Working.

President Biden’s Monday: Attending Queen Elizabeth II’s funeral in London. ICYMI, yesterday he told CBS News’ 60 Minutes that “the pandemic is over,” though hundreds of Americans are still dying of COVID daily, per ABC News. 

What’s Happening on Capitol Hill: A slow start to the week.