Walgreens Boots Alliance comments on 340B program
Members of Walgreens Boots Alliance management will be meeting with various investors. During these meetings, in addition to answering general inquiries, the company intends to clarify its participation in the U.S. Health Resources and Services Administration 340B drug pricing program. For the first nine months of fiscal 2017, prescriptions related to the 340B program represented less than 1% of the Retail Pharmacy USA division's prescription volume. The division has around 1,200 340B contracts. During the first nine months of fiscal 2017, 340B prescriptions were filled at approximately 6,100 of the division's pharmacies. 340B prescriptions represented a small percentage of the total prescriptions filled by these pharmacies. The proposal from the U.S. Centers for Medicare and Medicaid Services, announced on July 13, seeks to address how Medicare pays hospitals for drugs acquired under the 340B program, but does not propose eliminating the program altogether. The hospital market represents slightly more than half of the Retail Pharmacy USA division's overall 340B prescriptions. As required by law, 340B drug inventory is owned by the covered entity, not by the pharmacy. On a pro forma basis, for the nine months ended May 31, had the proposed changes to the program been in place throughout the period, the company estimates that the net impact on Retail Pharmacy USA divisional adjusted gross profit dollars would have been less than 0.5%.