AWP, WAC, and NADAC Explained: How to Actually Compare Generic Prices
Empire Rx Distributors · 6 min read
Why the benchmarks confuse everyone
Three different 'prices' follow every drug around, and none of them is what you'll actually pay. Knowing what each measures keeps a flashy discount from fooling you and tells you when a quote is genuinely good.
AWP: the sticker price
Average Wholesale Price is a published list benchmark — famously described as 'ain't what's paid.' Real acquisition costs, especially on generics, sit far below AWP. Its main modern use is in some reimbursement formulas. A discount quoted 'off AWP' sounds enormous by construction; never judge a generic deal by AWP percentage alone.
WAC: the manufacturer's list to wholesalers
Wholesale Acquisition Cost is the manufacturer's published list price to distributors, before discounts and rebates. It's more grounded than AWP but still a list price, not a street price. On brands, WAC roughly tracks reality; on generics, actual market prices routinely run far below it.
NADAC: closest to the street
The National Average Drug Acquisition Cost is CMS's survey of what retail pharmacies actually paid, by NDC, published and updated regularly. For generics it's the most honest single reference: if a wholesaler's price beats NADAC, you're buying below the national average pharmacy cost. It's an average, not a floor — sharp buyers beat it often — but it's the right yardstick.
How to use them at the buying desk
Compare quotes per unit at the NDC level against NADAC where available; treat AWP-based discounts as marketing; use WAC as context on brands. And weigh the whole cost: shipping, minimums, payment terms, and returnability are all part of the real price of a bottle.
Our approach
Empire Rx shows the price per package and per unit on every listing, next to the expiration date, so comparison takes seconds instead of a spreadsheet. Sign in, check us against your top movers, and let the numbers decide.
NABP-accredited wholesale for independent pharmacies.
Real dating on every listing · free shipping · Net terms.
Open an account