Average Wholesale Price of HIV Drugs

The wholesale price of HIV drugs is determined by a number of factors. Firstly, the manufacturer releases a wholesale acquisition cost (WAC), which is essentially the asking price of a drug before any discounts or rebates are added for volume purchases and/or prompt payment.

From this, a suggested wholesale price (SWP) is set. This is the price recommended by the manufacturer to wholesalers when determining prices for their customers, including retailers, hospitals, and institutions. The SWP is not the actual transactional cost, but rather a baseline from which wholesalers can make competitive pricing decisions.

By contrast, the average wholesale price (AWP) is the average price that retailers and others are reportedly paying for a particular drug. The AWP is reported by the manufacturers and compiled by independent publishers. That data is used by governments, insurance companies, and others to determine the reimbursement and retail prices of prescription drugs.

Finally, the direct price (DIRP or DP) is the price a non-wholesale buyer would expect to pay from the manufacturer. Generally speaking, there's a 20% markup between the WAC or DIRP and the AWP.

Here are the average wholesale prices for antiretroviral drugs per month (as of 12/18/2019).