Trading Partners

Notice regarding limitation on hospital contract pharmacy distribution

December 1, 2020

Beginning on January 1, 2021, Novo Nordisk Inc. (labeler codes 00169 and 71090) and Novo Nordisk Pharma, Inc. (labeler code 73070) ) (Novo Nordisk Inc. and Novo Nordisk Pharma, Inc. are collectively referred to herein as “Novo Nordisk”) will no longer facilitate “bill-to/ship-to” distribution of 340B product to a contract pharmacy of any of the six “hospital” covered entity types. 

If a “hospital” covered entity does not have an in-house pharmacy capable of dispensing product to outpatients, that covered entity may designate one contract pharmacy location to which product purchased by that covered entity may be shipped.

A hospital covered entity that does not maintain an on-site pharmacy at either a parent or child location may contact Novo Nordisk at 340BInfo@novonordisk.com to designate a single contract pharmacy location to accept bill-to/ship-to orders.

Novo Nordisk’s new policy will not deny access to 340B-priced covered outpatient drugs to any “hospital” covered entity.  Each may purchase as much Novo Nordisk product at the discounted 340B price that it wishes.  At no time will Novo Nordisk fail to offer 340B prices to each and every 340B covered entity.  It is merely the Novo Nordisk-facilitated shipment of that product to contract pharmacies (which are not themselves covered entities) that will be curtailed as of January 1, 2021.

None of the “grantee” covered entity types are impacted by this change in policy.   Novo Nordisk will continue to facilitate contract pharmacy “bill-to/ship-to” arrangements for these covered entities.  All “grantees,” including Community Health Centers, Ryan White HIV Clinics, Hemophilia Treatment Centers, Indian Health Centers, and all other grantee covered entity types, may continue to place orders for Novo Nordisk product and have them shipped to their registered contract pharmacies, without limitation.

Questions about this policy change should be directed to 340BInfo@novonordisk.com