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BRG Healthcare Professionals Publish White Paper Measuring Size of 340B Drug Discount Program

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July 18, 2017
BRG press release

Managing Director Aaron Vandervelde and Senior Managing Consultant Eleanor Blalock have published a new white paper, Measuring the Relative Size of the 340B Program: 2012-2017. This study was funded by the Pharmaceutical Research and Manufacturers of America.

Vandervelde and Blalock estimate the percentage of applicable US branded drug sales made at a 340B price from 2012 to 2017. Their analysis relies in large part on methodology they developed in a 2015 white paper and also incorporates up-to-date data on 340B program sales and total US drug sales. They use a measure to compare total gross 340B purchases to the total gross potential market for which 340B purchased drugs are eligible. The 340B program is limited to a subset of the overall US pharmaceuticals market, because 340B purchased drugs are exclusively for outpatient use.

Vandervelde commented, "This study provides new perspective on historical growth in the 340B program and the relative size of the 340B marketplace today. Drug purchases at the 340B price exceeded $16 billion in 2016, and as the 340B program continues to expand it will play an increasingly important role in the overall pharmaceutical marketplace."

The 340B program has grown significantly over the past decade and has accelerated in recent years. Viewed as a percentage of brand, outpatient drug sales, 340B purchases represented almost 8 percent of the overall market in 2016.

Read the white paper.

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