Robert Freeman April 2705

Page 6

Structure/Dynamics

Anatomy of Price in the US Market

Discounts

Channels

$125

 Average wholesaler price (AWP)

-- Price to cash patients -- Reimbursement reference price

$4.43

$115

 Actual reimbursement to retailers

$4.07

$102

Wholesale selling price to retailers

$3.61

$100

 Ex-manufacturer price -- Wholesaler acquisition cost (WAC) -- Catalog price

$3.54

$84

 Price to private third party payers

$2.97

$71

 Price to states / hospitals

$2.51

 Price to Federal government

$1.42-$2.12

$60-$40

6


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