U.S. Senator Bill Cassidy, chair of the Senate Health, Education, Labor, and Pensions (HELP) Committee, has requested information from Apexus regarding its revenue generation and business practices related to the 340B Drug Pricing Program. This inquiry is part of an ongoing investigation led by Cassidy into how financial flows within the 340B Program impact patient access and 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.”
Apexus has served as the exclusive 340B prime vendor since 2004 under contract with the Health Resources and Services Administration (HRSA). Its responsibilities include negotiating drug prices below statutory ceilings for covered entities, establishing distribution networks for affordable medications, and providing educational services. In addition to these contracted duties, Apexus engages in other business activities associated with the program that generate substantial revenue from both covered entities and manufacturers.
Recent media coverage reported that Apexus collects fees on nearly every drug sold through the program, resulting in hundreds of millions of dollars in revenue annually. The reports also noted that Apexus has expanded its operations beyond its primary role by working with covered entities to increase utilization of the program and by adding new business lines aimed at boosting profits.
Cassidy emphasized his commitment to increasing accountability and transparency within the 340B Program so that it benefits patients who need quality health care. He stated his intention to seek more detailed information from Apexus about their operations to ensure efficiency within the Prime Vendor Program while preventing incentives that may not align with patient interests.
The full letter sent by Chairman Cassidy can be accessed online.
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