Important Note

This article is provided for informational purposes only and does not constitute legal advice. Alchemy is strongly opposed to Novartis’s position regarding 340B pricing restrictions for Section 318 (STD) grantee clinics. We believe this interpretation is inconsistent with both the 340B statute and HRSA’s published guidance, and we encourage affected clinics to seek clarification directly from HRSA and legal counsel.

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“Your entity does not qualify for 340B pricing for any Novartis products as an STD covered entity because those products cannot be used to perform services within the scope of its Section 318 STD grant. None of Novartis’ products are indicated for the treatment or prevention of STDs.”

We didn't know when we initially partnered, but the pharmacy launch came at a critical moment. Just months before, the CVS down the road from Quality Comprehensive closed its doors, further exacerbating healthcare access challenges in the neighborhood. Speaking at the grand opening and ribbon cutting, Representative Dr. Alma Adams (D-NC) highlighted the vital importance of the pharmacy: "This is not only what we need, it's what our citizens absolutely have to have. For the people who can now come here to get their prescriptions, this is going to be a huge benefit to them. I commend the Quality Comprehensive team for this fantastic initiative."

“STD (318 grantee) clinics that participate in the 340B Program may purchase and dispense any 340B drugs associated with a service for which the covered entity is responsible, including contraceptives, to that patient, to the extent it aligns with the patient definition and is consistent with the scope of the grant.” — HRSA Office of Pharmacy Affairs

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The question really is why not work with Alchemy? The staff have been truly amazing. The personal approach they have with us, making a tailor-made pharmacy to meet the needs of our community. It was a no-brainer.

Brian Franks

Head of Pharmacy Operations