Thursday, October 2, 2014

Genentech's distribution change for cancer drugs upsets hospitals | Modern Healthcare

Read the full article: Genentech's distribution change for cancer drugs upsets hospitals | Modern Healthcare:

"Drugmaker Genentech is changing the way it ships three high-profile cancer drugs to hospitals, which are concerned that the new process will grossly inflate their already high costs and potentially affect patient care. Genentech contends the change is designed to ensure patient safety and access to the drugs involved.

In a Sept. 16 letter to hospital pharmacy directors (PDF), Genentech, a U.S. subsidiary of Swiss healthcare giant Roche, said effective Oct. 1, hospitals can receive Avastin, Herceptin and Rituxan only through six authorized specialty distributors. The approved companies are ASD Healthcare, BioSolutionsDirect, Cardinal Health Specialty Distribution, McKesson Plasma and Biologics, Morris & Dickson Specialty Distribution and Smith Medical Partners.

For hospitals, this means they will have to contract with one of those specialty distributors if they want to continue receiving those three cancer drugs. Previously, hospitals purchased the drugs through wholesale distributors, which offer hospitals discounts based on purchase volume."

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