First DataBank Inc. publishes several drug price data fields, including Wholesale Acquisition Cost, Direct Price, Suggested Wholesale Price, and Blue Book AWP.
Wholesale Acquisition Cost (WAC)
(
previously referred to as Net Wholesale Price) as published by First DataBank represents the manufacturer's (for purposes of this Drug Price Policy, the term "manufacturer" includes manufacturers, repackagers, private labelers and other suppliers) published catalog or list price for a drug product to wholesalers as reported to First DataBank by the manufacturer. WAC does not represent actual transaction prices and does not include prompt pay or other discounts, rebates or reductions in price. First DataBank does not perform any independent investigation or analysis of actual transaction prices for purposes of reporting WAC. First DataBank relies on manufacturers to report or otherwise make available the values for the WAC data field.
Direct Price (DP)
as
published by First DataBank represents the manufacturer's published catalog or list price for a drug product to non-wholesalers as reported to First DataBank by the manufacturer. Direct Price does not represent actual transaction prices and does not include prompt pay or other discounts, rebates or reductions. First DataBank does not perform any independent investigation or analysis of actual transaction prices for purposes of reporting Direct Price. First DataBank relies on manufacturers to report or otherwise make available the values for the Direct Price data field.
Suggested Wholesale Price (SWP)
as
published by First DataBank represents the manufacturer's suggested price for a drug product from wholesalers to their customers (i.e., retailers, hospitals, physicians and other buying entities) as reported to First DataBank by the manufacturer. SWP is a suggested price and does not represent actual transaction prices. First DataBank relies on manufacturers to report or otherwise make available the values for the SWP data field.
Blue Book AWP (BBAWP)
First
DataBank has announced that it will cease publishing the Blue Book AWP data field for all drugs no later than September 26, 2011.
Blue Book AWP as published by First DataBank is intended to represent a benchmark of wholesalers' catalog or list prices for a drug product to their customers (i.e., retailers, hospitals, physicians and other buying entities). However, for those drug products generally not distributed through the wholesaler sales channel, the BBAWP data field will reflect the same value as the Direct Price data field.
First DataBank historically relied upon wholesalers to provide information relating to their catalog or list prices for purposes of publishing the BBAWP data field. First DataBank periodically surveyed full-line national wholesalers to determine the average mark-up applied to a manufacturer's line of products or a specific product. The average mark-up of the wholesaler(s) responding to the survey was applied against the WAC or Direct Price with the resulting value populating the BBAWP field. In certain instances, the responding wholesaler(s) would accept a manufacturer's suggested wholesale price, in which case the BBAWP and SWP data fields would reflect the same value.
First DataBank has discontinued surveying drug wholesalers for information relating to their catalog or list prices and, as a result, no longer updates the wholesaler mark-up information. Effective September 26, 2009, First DataBank will adjust its reporting of Blue Book AWP by reducing the mark-up factor utilized in connection with the calculation of the Blue Book AWP data field to 1.20 times the WAC or Direct Price for those drug products that are on a mark-up basis in excess of 1.20 (i.e., the mark-up factor will be capped at 1.20). For those manufacturer product lines for which wholesalers historically accepted the manufacturer's Suggested Wholesale Price, First DataBank will continue to populate the Blue Book AWP and the Suggested Wholesale Price data fields with the same value. Blue Book AWP will vary solely as a result of changes in WAC, Direct Price and SWP as provided by manufacturers.
For those drug manufacturers and lines of products for which First DataBank does not maintain a historical mark-up (e.g., new manufacturers) and for those drug manufacturers who no longer provide the necessary price fields, BBAWP will be determined by applying a standardized mark-up of 1.20 times the manufacturer's WAC or, if a WAC is not available, times the manufacturer's Direct Price. To the extent that neither the WAC nor the Direct Price is available, First DataBank will populate the BBAWP and the Suggested Wholesale Price data fields with the same value. However, for those drug products generally not distributed through the wholesaler sales channel, the BBAWP data field will reflect the same value as the Direct Price data field.
BBAWP does not represent actual transaction prices and does not include prompt pay or other discounts, rebates or reductions. First DataBank does not perform any independent investigation or analysis of actual transaction prices for purposes of reporting BBAWP. BBAWP may not accurately approximate a wholesaler's catalog or list price for the sale of a drug product to its customers. Further, wholesalers may not use catalog or list prices as a basis for determining actual transaction prices. First DataBank does not perform any independent investigation or analysis of list or catalog prices for purposes of reporting BBAWP and no longer surveys wholesalers for purposes of publishing BBAWP.
First DataBank relies on manufacturers and other third parties to report or otherwise make available the values for the above referenced drug price data fields and, as a result, such data fields are subject to the availability of the relevant information. First DataBank reserves the right, in its sole discretion, to change this Drug Price Policy without notice. Please check back and refer to First DataBank's Drug Price Policy as you review and utilize the pricing information contained in First DataBank's products.
Please contact Customer Service at 800-633-3453 if you have any questions.