J&J to end some up-front drug discounts for hospitals, WSJ reports

Johnson & Johnson told certain hospitals around the U.S. that they will have to pay full price for two drugs that the company has sold at a discount under the drug-savings program and can apply later for a rebate, according to a letter reviewed by The Wall Street Journal. J&J said its new rebate system is for its psoriasis and gut-disorder treatment Stelara and blood thinner Xarelto, noting that hospitals classified as “disproportionate share hospitals” will have to purchase the drugs from wholesalers at commercial prices, similar to what non-340B customers pay, reported Melanie Evans and Peter Loftus.