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
The definition of Estimated Acquisition Cost (EAC) was changed from wholesaler's acquisition cost (WAC) plus 6% to WAC plus 5%. (AWP) times 84% or AWP less 16%
Related to AWP is Wholesale Acquisition Cost (WAC), which is the list price set by manufacturers for each product. AWP is typically set at approx-imately 20% to 25% above WAC. However, like AWP, WAC does not represent what a wholesaler actually pays for the drug because the WAC does not include many of discounts and price conces-
Use of WAC vs AWP in Contracts. Pharmacy. PBM. Manufacturer. Patient. Plan Sponsor. 28. AWP. AWP. WAC. WAC. Wholesaler. WAC. WAC. Contract
The average wholesale price (AWP) is the retail list price for drugs sold by pharmacies. For brand name drugs, the AWP is typically about 20 percent above the WAC, but for generic drugs the spread between the WAC and AWP is more varied and can be substantially larger.
And, because AWP = 1.2x WAC, AWP also has very little correlation with true acquisition cost. Thus contracts benchmarked to AWP, and paying on
AWP is the average wholesale price of a drug, while WAC is the wholesale acquisition cost of a drug. Learn how AWP and WAC are determined, how they are used for reimbursement and profit, and why they are controversial.
The average wholesale price (AWP) is the retail list price for drugs sold by pharmacies. For brand name drugs, the AWP is typically about 20 percent above the WAC, but for generic drugs the spread between the WAC and AWP is more varied and can be substantially larger.
Calculated Average Wholesale Price 1.20 (C-AWP 1.20):. For companies not suggesting an AWP, a mark-up of 20% is applied to the reported WAC. If no WAC
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