Pharma Commercial & Pricing

Pharma commercial and pricing: gross-to-net, WAC and ASP, rebates and chargebacks, PBMs and formularies, payers, and market access.

Key terms & definitions

18 terms in this pack

ASP

Average Sales Price, net of discounts, used for Medicare Part B (acronym)

CHARGEBACK

Repayment to a wholesaler that sold a drug at a contracted discount

COPAY

The patient's fixed share of a prescription's cost

DISTRIBUTOR

Middleman that moves product through the supply chain

FORMULARY

A payer's list of the drugs it will cover

GROSSSALES

Revenue measured at list price, before deductions (two words)

GROSSTONET

The bridge from list price to net revenue after rebates and discounts (two words)

LAUNCH

The commercial debut of a newly approved drug

LISTPRICE

The headline price before any discounts (two words)

MARKETACCESS

Function ensuring payers cover and reimburse a drug (two words)

MEDICAID

Government program with mandatory drug rebates

NETPRICE

Manufacturer revenue after all rebates, chargebacks and fees (two words)

PAYER

Insurer or program that reimburses for a drug

PBM

Pharmacy Benefit Manager that negotiates rebates and formularies (acronym)

REBATE

Retrospective payment to a payer for favorable formulary placement

SPECIALTY

___ pharmacy: channel for high-cost, complex therapies

WAC

Wholesale Acquisition Cost, essentially a drug's list price (acronym)

WHOLESALER

Distributor that buys from manufacturers and sells to pharmacies