And, because AWP = 1.2x WAC, AWP also has very little correlation with true acquisition cost. Thus contracts benchmarked to AWP, and paying on
The negotiated price between pharmacies and payers are typically set based on a discount off AWP. For brand-name drugs, AWP is generally a mark-up of 20% above WAC and changes as WAC is changed over time. For generic drugs, AWP is often set as a discount off WAC or AWP for the reference brand product when a drug was first introduced to market.
As a rule of thumb, the AWP is usually ~20% more than the WAC. The difference between the WAC and the AWP is known as the spread, and
AWP is related to WAC, although not by a standard multiplier. Historically, the relationship of AWP to WAC has been most com-monly, though not always, characterized by one of the following equations, as determined by the publisher: AWP = 1.20 x WAC, or AWP = 1.25 x WAC for branded pharmaceuticals. While multi-
(WAC vs ASP?) The price paid by Medicare for Part B (physician administered) What is the price benchmark to replace average wholesale price (AWP)?
The rollback of AWP as a result of reducing the WAC/DP (direct price) vs. biologic) on this change. Evaluation of Specialty Drug Price Trends
(AWP), Wholesale Acquisition Cost (WAC), Direct Price (DP) Check-A-Fee - vs. Medicare Specialty Fee Report Unlimited Fee Reports
AWP is not a regulated figure and is typically calculated by adding a 20% markup to the WAC. The AWP is calculated and published by pricing
AWP and WAC, which is as follows: AWP = WAC 20% (or WAC times 1.2) WAC = AWP – 16.667% (or AWP times 0.8333). You can estimate the profitability of branded
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