Pricing benchmarks

Drug pricing benchmarks explained

Drug pricing teams often compare NADAC against AWP or WAC without clarifying what question they are actually trying to answer. The right benchmark depends on whether you are assessing acquisition reality, contract language, or payer rules.

Quick benchmark search

Search for a product name or NDC to compare the current price against the market context you are studying.

NADAC

National Average Drug Acquisition Cost, based on actual pharmacy invoice data and generally the most market-reflective benchmark for acquisition cost analysis.

Best for: reimbursement benchmarking, price monitoring, and market comparison.

AWP

Average Wholesale Price, historically used in contract language and legacy pricing formulas but often far from the actual acquisition cost paid in the market.

Best for: interpreting contract structures and legacy reimbursement formulas.

WAC & MAC

WAC is manufacturer list pricing to wholesalers, while MAC is a payer-specific allowable ceiling for generic reimbursement. Both are useful in specific contracting contexts.

Best for: payer rules, pricing floors, and formulary comparisons.

When to use each benchmark

Use NADAC when the goal is to understand what pharmacies are paying and how a market is moving over time.

Use AWP when an agreement or legacy reimbursement formula is written around it and you need to interpret contract language.

Use WAC and MAC when you need payer-side rules, formulary ceilings, or a more administrative benchmark within a specific coverage framework.

A good practical workflow

  1. 1. Search for the exact product using the live data.
  2. 2. Compare the same product across the relevant market and supplier set.
  3. 3. Review weekly movement in trends before making a benchmark or reimbursement conclusion.