(a) Exclusion from best price. Sales of covered outpatient drugs by a manufacturer at nominal prices are excluded from best price when purchased by the following entities:
(1) A covered entity described in section 340B(a)(4) of the PHSA;
(2) An ICF/IID providing services as set forth in Sec. 440.150 of this chapter; or
(3) A State-owned or operated nursing facility providing services as set forth in Sec. 440.155 of this chapter.
(b) Nonapplication. This restriction shall not apply to sales by a manufacturer of covered outpatient drugs that are sold under a master agreement under 38, U.S.C. 8126.