Average Wholesale Price (AWP) Policy

 Revised: February 17, 2004

 

AWP Policy

The Average Wholesale Price (AWP) as published by Truven Health Analytics is in most cases the manufacturer’s1 suggested AWP and does not necessarily reflect the actual AWP charged by a wholesaler. Truven Health Analytics bases the AWP data it publishes on the following:

 

When the manufacturer does not provide an AWP or markup formula from which AWP can be calculated, the AWP will be calculated by applying a standard 20% markup over the manufacturer supplied WAC. If a WAC is not provided, the standard markup will be applied to the DIRP.

 

Please note that Truven Health Analytics does not perform any independent analysis to determine or calculate the actual AWP paid by providers2 to wholesalers. Truven Health Analytics also does not independently investigate the actual WAC paid by wholesalers to manufacturers or DIRP paid by providers to manufacturers. Truven Health Analytics relies on the manufacturers to report the values for these categories as described above.

 

Truven Health Analytics provides a list of the manufacturers that do not provide the AWP or a markup formula. The list of these manufacturers and products is available at: http://www.micromedex.com/products/redbook/awp/.

 

Additionally, an ASCII text file with this same information is available to download. For more information on this file and instructions on downloading, please contact Truven Health Analytics Technical Support at http://www.micromedex.com/support/request/.

 

Please refer to this AWP Policy as you review the pricing information contained in the Truven Health Analytics products.

 

1The term "manufacturer" includes manufacturers, repackagers and private labelers.

2The term "provider" includes retailers, hospitals, physicians and others buying either from the wholesaler or directly from the manufacturer for distribution to a patient.