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Berkeley Research Group executive speaks about the role of manufacturers in 340B pricing.
In an interview with Pharmaceutical Commerce editor Nicholas Saraceno, Andrew Brownlee, director, Berkeley Research Group, discusses how manufacturers calculate 340B pricing.
Brownlee: It is subject to a formula that all manufacturers have to provide. For branded pharmaceuticals, it is a ceiling price, which means that it's the maximum price that a manufacturer can charge for a 340B priced product. That ceiling price is subject to a discount of the unit rebate amount (URA). The URA is the greater of 23.1%, or the best price, which is essentially the greatest discount that the manufacturer offers on the branded product. Each 340B discount is also subject to an inflationary penalty, so if the list price of the product grows faster than core inflation, then there would be an additional discount added to the URA.