Genentech shift could prove costly for hospitals

Genentech has changed the way it ships cancer drugs to hospitals, and that could mean the end of discounts those organizations are used to receiving on the meds, Modern Healthcare reported Tuesday. In a letter to hospital pharmacy directors dated September 16, the Roche subsidiary stated that hospitals can only receive cancer drugs Avastin, Herceptin and Rituxan through six authorized specialty distributors. According to the news outlet, hospitals will now have to work out agreements with these distributors if they want to continue receiving the treatments. Before the notice, hospitals purchased these drugs through wholesale distributors that often offered discounts, explained Modern Healthcare, and these discounts will not be available from the new specialty distributors.