Episode 429 of 'Relentless Health Value' discusses complex pharmacy pricing acronyms like AWP (Average Wholesale Price), WAC (Wholesale Acquisition Cost), and NADAC (National Average Drug Acquisition Cost). Host Stacey Richter speaks with Luke Slindee about the convoluted drug supply chain, explaining how manufacturers, wholesalers, pharmacies, and pharmacy benefit managers (PBMs) interact.

The episode explores how these interactions influence drug prices, rebates, and discounts, illuminating the opaque middleman transactions that often occur. Additionally, the conversation highlights the economic pressures on independent pharmacies and the resultant impact on pharmacy staff and access to medications.

=== LINKS === 🔗 Show Notes with all mentioned links: https://cc-lnk.com/EP429

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09:52 Why is it important for plan sponsors to understand the going rate for every point in the supply chain?

10:21 How do manufacturers come up with a list price?

10:40 What does AWP stand for?

10:59 What does WAC stand for?

11:06 How are AWP and WAC numbers chosen by the manufacturer?

13:22 What is the difference between AWP and WAC?

14:54 How much are wholesalers paying to manufacturers?

16:43 How much is the pharmacy paying for branded drugs from a wholesaler?

17:34 Why might pharmacies be buying drugs for less than what wholesalers are paying?

18:17 Substack article by Benjamin Jolley, PharmD, on this topic.

19:22 EP423 with Joey Dizenhouse.

20:33 Why do things get weird when a PBM gets involved?

21:58 How does all of this work for generic manufacturers?

25:20 EP344 with Steven Quimby, MD.

26:15 How did Civica Rx come about?

32:21 What's the difference between the NADAC and the AWP value?

36:04 Luke discusses the downstream effects to pharmacies.