Pricing Policy

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As of March 27, 2008, manufacturers reported WAC or Direct Price for approximately 53% of all prescription and over-the-counter products contained in the NDDF Plus database. First DataBank will update the foregoing percentage on a quarterly basis.


The following companies, which have drug product pricing information contained within our databases, have notified First DataBank that they do not wish to participate in our Pricing Confirmation process.

First DataBank Inc. publishes several drug price data fields, including Wholesale Acquisition Cost, Direct Price, Suggested Wholesale Price, Blue Book AWP and Alternative Benchmark Price.

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. 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. 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). 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) as published by First DataBank is intended to represent an average 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. However, for purposes of publishing BBAWP, First DataBank has "frozen" the last average wholesale mark-up previously provided to First DataBank through the wholesaler survey process and will no longer update such mark-up. Upon receipt of a change in drug pricing from a manufacturer, this mark-up is applied against the WAC or, if a WAC is not available, the Direct Price, with the resulting value populating the BBAWP field. 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. As a result, Blue Book AWP will vary solely as a result of changes in pricing information 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), BBAWP will be determined by applying a standardized mark-up of 25% for prescription drugs and 23% for over-the-counter drugs over the manufacturer's WAC or, if a WAC is not available, over 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. The standardized mark-ups adopted by First DataBank were determined through a historical analysis of the Blue Book AWP for prescription and over-the-counter drugs as published by First DataBank, as further described below under "Alternative Benchmark AWP." 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.

Alternative Benchmark Price (ABP). Commencing on or about March 31, 2005, First DataBank will publish an additional data field as an alternative benchmark to BBAWP. This Alternative Benchmark Price will be based solely upon a manufacturer's WAC or, if the WAC is not available, the manufacturer's Direct Price. The Alternative Benchmark Price will not give effect to the SWP provided by manufacturers, regardless of whether such value historically was accepted by wholesalers. First DataBank will calculate the Alternative Benchmark Price by applying standardized mark-ups to the manufacturer's WAC or Direct Price, as follows:

Prescription drugs. For prescription drugs, First DataBank will utilize a standardized mark-up of 25% over the manufacturer's WAC or, if a WAC is not available, over the manufacturer's Direct Price.

Over-the-counter drugs. For over-the-counter drugs, First DataBank will utilize a standardized mark-up of 23% over the manufacturer's WAC or, if a WAC is not available, over the manufacturer's Direct Price.

Notwithstanding the foregoing, for those drug products generally not distributed through the wholesaler sales channel, the Alternative Benchmark Price data field will reflect the same value as the Direct Price data field.

First DataBank will not publish the Alternative Benchmark Price for any drug product for which a manufacturer fails to report or otherwise make available the WAC or Direct Price. A list of manufacturers and the relevant products that do not report or make available a WAC or Direct Price will be available on our website at http://www.firstdatabank.com/support/rcs/policies/pricing/.

The standardized mark-ups adopted by First DataBank were determined through a historical analysis of the BBAWP for all prescription and over-the-counter drugs as published by First DataBank as of December 31, 2001-2004. Such analysis included only those product lines for which a wholesaler mark-up was applied against WAC or Direct Price and generally excluded any product line or specific drug product for which a wholesaler accepted a manufacturer's suggested wholesale price. Such analysis further excluded all private label drug products, repackaged drug products, bulk chemicals, herbals and non-drug items. The standardized mark-up represents the cumulative average difference between the (i) BBAWP and (ii) WAC or Direct Price (as applicable) for the universe of prescription drug products and over-the-counter drug products, as the case may be, included on the NDDF Plus™ database at the relevant times, with the resulting cumulative averages rounded to the nearest whole percentage point.

Following a reasonable period of time necessary to allow First DataBank customers to evaluate and adopt the Alternative Benchmark Price, First DataBank intends to discontinue reporting BBAWP under its current methodology and to substitute the Alternative Benchmark Price as its sole AWP data field. However, to insure that First DataBank will be able to continue offering its customers a comprehensive database of pricing information, First DataBank intends to continue publishing BBAWP at least until such time as manufacturers report or otherwise make available to First DataBank either the WAC or Direct Price for at least 95% of all prescription and over-the-counter products contained in the NDDF Plus database. As of March 27, 2008, manufacturers reported WAC or Direct Price for approximately 53% of all prescription and over-the-counter products contained in the NDDF Plus database. First DataBank will update the foregoing percentage on a quarterly basis.

The Alternative Benchmark Price will be made available to all NDDF Plus and Drug Information Framework customers. Most NDDF Plus and Drug Information Framework™ customers will automatically receive the Alternative Benchmark Price data field as part of their regularly scheduled pricing file updates. However, those customers receiving a customized version of the NDDF Plus database or the NDDF St. Louis (PIF) database must contact the First DataBank Customer Service Department to arrange for delivery of the Alternative Benchmark Price data field. In addition, the Alternative Benchmark Price data field is currently not included in the PriceProbe™ product.

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.