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Limited Distribution Drugs: A Guide to Networks and Specialty Pharmacies

Ashley Wong, PharmDChristina Aungst, PharmD
Updated on September 12, 2023

Key takeaways:

  • Some medications are used to treat rare or complex medical conditions, such as cancer. These are often considered limited distribution drugs (LDDs).

  • LDDs are only available through a select number of specialty pharmacies or directly from your healthcare provider. 

  • If you’re prescribed an LDD, you’ll likely be set up with a particular specialty pharmacy by your insurance or provider. They’ll handle your prescription from start to finish.

White pill bottle with white oblong pills spilled out across the frame on a yellow background.
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Many medications that treat complex medical conditions are only available through limited distribution. This means you probably can’t just pick them up at your local pharmacy. Instead, you can only get them from specific pharmacies — usually specialty pharmacies.

This can sometimes add a few extra steps when accessing these medications. But it can also allow you to have a closer relationship with your healthcare team. And you may be more likely to take your medication as prescribed. That’s because specialty pharmacies conduct regular follow-ups. This is to answer any questions you have and make sure you’re taking it properly, to help you get the best results.

So, what exactly is a limited distribution drug, and what happens if you’re prescribed one?

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What are limited distribution drugs?

Limited distribution drugs (LDD) are medications that are only available through certain pharmacies. They’re generally used to treat complex or rare medical conditions.

LDDs are usually higher cost. They may also have special storage and handling, administration, or monitoring requirements.

Why can you only get limited distribution drugs filled at specific pharmacies?

Most pharmaceutical manufacturers manage some or all of their specialty medications through a limited distribution. This means only some specialty pharmacies are allowed to dispense their LDDs.

It may seem like manufacturers are trying to control access to their medications. But there can be benefits to limiting the pharmacies that dispense LDDs for you, too.

For one, this model ensures that the pharmacy’s clinical staff is highly trained on your medication. They can support you in ways a traditional community pharmacy can’t. 

For example, the staff may be able to give you tips on how to avoid side effects. Side effects can often cause people to stop taking their medication.

They may also be able to handle insurance coverage and billing issues, which can be more complex or take longer with specialty medications. This might include obtaining copay assistance so your medication is more affordable. And dedicated staff will typically conduct regular follow-ups to help you stick to your treatment plan more closely.

What types of medications are limited distribution drugs?

LDDs typically have a higher risk of serious side effects. As mentioned above, they can also be higher cost or have special storage requirements. Some may even require thorough training before you can safely use them. 

Here are some medical conditions with examples of their LDDs:

Some LDDs are only available through your healthcare provider. These are usually medications that need to be administered by a healthcare professional, such as an infusion.

What are limited distribution networks?

Manufacturers work with a small number of pharmacies to dispense their LDDs. These are called limited distribution networks (LDN). If you’re prescribed an LDD, you may receive it from one of these contracted pharmacies.

What are some examples of pharmacies that offer limited distribution drugs?

Specialty pharmacies are almost always mail-order pharmacies. They have highly trained clinical staff who handle all aspects of your prescription. This includes processing, billing, training, and more.

Some healthcare providers have existing relationships with particular specialty pharmacies. So, they may prefer to send people to those pharmacies. This may occur with certain conditions, such as cancer. 

Accredo, CVS Caremark, and Optum specialty pharmacies are a few of the most common pharmacies that dispense LDDs. Examples of LDDs dispensed by these specialty pharmacies include:

What should you know if you’re prescribed a limited distribution drug?

If you’re prescribed an LDD, your insurance provider will typically have a preferred specialty pharmacy network. You’ll need to fill your prescription within that network for coverage.

It’s possible that a specialty pharmacy will be selected for you. For example, your healthcare provider may refer you to specific pharmacies that will be able to give you the best price. That specialty pharmacy will handle your prescription from start to finish.

This includes:

  • Getting the prescription from your healthcare provider

  • Apply any available manufacturer copay savings cards

  • Handling the billing and any financial assistance applications

  • Taking care of any authorizations that are needed

  • Filling the medication

  • Training you on how to use it

The pharmacy may ship the medication to your home. But sometimes they might ship it to your healthcare provider’s office. Depending on what type of medication it is, you may not be able to administer it yourself.

The bottom line

People with rare or complex medical conditions are often prescribed specialty medications. These medications may have a higher cost and specific administration and/or monitoring requirements. Several of these medications are considered LDDs. That means they’re only available through a small number of specialty pharmacies.

If you’re prescribed an LDD, you’ll likely be set up with a certain specialty pharmacy. They’ll gather all the information needed to process, fill, and ship your medication to you or your provider.

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Why trust our experts?

Ashley Wong, PharmD
Ashley Wong, PharmD, is a licensed pharmacist in California. She has over 6 years of experience providing drug information.
Alyssa Billingsley, PharmD
Alyssa Billingsley, PharmD, is the director of pharmacy content for GoodRx. She has over a decade of experience as a pharmacist and has worked in clinical, academic, and administrative roles.
Christina Aungst, PharmD
Christina Aungst, PharmD, is a pharmacy editor for GoodRx. She began writing for GoodRx Health in 2019, transitioning from freelance writer to editor in 2021.

References

American Society of Health-System Pharmacists. (2015). ASHP specialty pharmacy resource guide.

American Society of Health-System Pharmacists. (2020). ASHP accreditation standard for specialty pharmacy practice.

View All References (5)

Blue Cross Blue Shield of Florida. (2021). List of LDD access.

CSI Specialty Group. (2019). 2019 sate of specialty pharmacy report.

CVS/Caremark. (2021). Specialty pharmacy drug list.

Drug Topics. (2021). The power of a referral form in a limited distribution specialty pharmacy network.

Optum. (2020). Medications for complex conditions.

GoodRx Health has strict sourcing policies and relies on primary sources such as medical organizations, governmental agencies, academic institutions, and peer-reviewed scientific journals. Learn more about how we ensure our content is accurate, thorough, and unbiased by reading our editorial guidelines.

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