Drug Topics October 26, 2024
Killian Meara

AJ Loiacono, co-founder and CEO of Capital RX, discusses how the National Average Drug Acquisition Cost provides accuracy and transparency for stakeholders across the drug supply chain.

The National Average Drug Acquisition Cost (NADAC) is a benchmark that provides drug prices to the pharmaceutical supply chain. The prices, which are determined by averaging prices from retail community pharmacies across the United States, are gathered from the monthly Retail Price Survey conducted by the Centers for Medicare and Medicaid Services (CMS).1

Traditionally, the wholesale acquisition cost (WAC) was used to determine prices through cost-effectiveness analyses. However, drug prices from the WAC did not reflect the actual cost paid for drugs due to different discounts and rebates granted to entities throughout the...

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