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Can CMS clarify its expectation when it comes to a situation where a labeler may

CMS does not require that two separate NDC-9s be blended, however, the agency believes that in certain circumstances, a manufacturer may blend the AMPs of two NDC-9. For example, if a manufacturer acquires a product from a different labeler and has made necessary arrangements with the prior manufacturer, it may have product with the old labeler code (ex. 12345) as well as product from its own labeler code (ex. 67890) in the market at the same time while the supply of the drug under the old labeler code is depleted. Since the two NDC-9s are essentially the same product/strength combination, it may be reasonable to blend the AMPs and report the same AMP for both NDCs. As always, it is recommended that manufacturers retain written documentation of any reasonable assumptions made in the calculation of AMP. Manufacturers may contact CMS for further guidance and discussion as the facts and circumstances of each case should be evaluated independently.

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Date
FAQ ID
94791
FAQ Question
Can CMS clarify its expectation when it comes to a situation where a labeler may have two different NDC-9s (that is not an authorized generic situation) that are the exact same drug (for example if an old labeler code is being terminated and replaced with a new labeler code)? Should the manufacturer calculate the two NDC-9s separately or merge the data together for one price across both NDC-9s?