Average Wholesale Price (AWP)

Average Wholesale Price (AWP) is a standard reference used in the pharmaceutical industry to estimate the typical cost of a drug from wholesalers to retailers or providers. It represents an average price that pharmacies might pay for medications, though it often doesn't reflect the actual purchase price, which can be lower due to discounts. AWP is primarily used by insurers, pharmacy benefit managers, and policymakers to compare drug prices, set reimbursement rates, and manage costs. While it provides a baseline for pricing, actual transaction prices can vary based on negotiations, volume discounts, and other factors.