WASHINGTON – U.S. Senator Bill Cassidy, M.D. (R-LA), chair of the Senate Health, Education, Labor, and Pensions (HELP) Committee, is seeking information from the 340B prime vendor, Apexus, on how it generates revenue from and structures its business practices around the 340B Drug Pricing Program. This is part of Cassidy’s years-long investigation into how revenue flows between different participants in the 340B Program, ensuring it supports American patients and families by lowering health care costs.
“As I indicated in my report on the 340B Program last spring, a serious lack of transparency in the 340B Program prevents 340B discounts from translating to better access or lower costs for patients,” wrote Dr. Cassidy. “In light of Apexus’s role as the current 340B prime vendor, and given questions raised into its business practices, I am requesting information and data to better understand how Apexus generates its revenue and designs its commercial offerings related to the 340B Program.”
Since 2004, Apexus has held an exclusive contract with the Health Resources and Services Administration (HRSA) as the sole 340B prime vendor. As the prime vendor, Apexus is tasked with negotiating drug prices for covered entities that are below the 340B statutory ceiling price, establishing distribution solutions and networks to improve access to affordable medications, and providing educational products and other services. Apexus also has a number of other 340B-related business practices that fall outside of its contract with HRSA, which nonetheless generate significant revenue from covered entities and manufacturers.
Last year, media reports found that Apexus generated hundreds of millions of dollars in revenue through fees it collects for almost every drug sold under the 340B Program. It also found that Apexus has expanded its business beyond its core role as the 340B prime vendor, working with covered entities to increase 340B utilization and adding additional business lines to increase its profits.
As Chairman of the HELP Committee, Cassidy is committed to strengthening accountability and transparency in the 340B Program to ensure patients in need can access quality health care. To this end, Cassidy wants further clarity from Apexus to ensure the 340B Prime Vendor Program operates as efficiently as possible, while benefitting patients and avoiding misaligned incentives.
Read the full letter here.
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