Mike Strazzella, head of the firm's federal government relations practice and leader of its healthcare industry team, comments on the convolution and secrecies of drug pricing patterns in the federal 340B Drug Pricing Program that sets pricing on how much pharmacies charge indigent people in Houston Chronicle's article "How Does Big Pharma Set Prices? High."
“The 340B program, like so many other government programs, has become so very convoluted, that it’s very hard to follow as a consumer, or as a reporter, or as a lobbyist, in my case,” said Mike Strazzella, an industry expert and head of federal government relations for Buchanan, Ingersoll and Rooney’s Washington D.C. office.
“There is definitely a fight going on right now. If you listen to the hospitals, their drug spend is so significant, that the exorbitant pharmaceutical prices have gotten to the point where the 340B program is extremely necessary,” he added. “The pharmaceutical companies have argued that higher drug prices for the public are partly to make up for lost dollars from the 340B program.”
“Because a number is listed, it does not mean that’s what it cost to make. It does not mean that’s the number where it will be profitable,” Strazzella said. “It’s a number that has been listed that allows them to operate and make a profit across many different payment systems.”
The article was also picked up by the San Antonio Express News.