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If a manufacturer markets both the branded drug and the AG version (in essence the

Section 1927(k)(1)(C) of the Act requires that in the case of a manufacturer that approves, allows, or otherwise permits any drug of the manufacturer to be sold under a new drug application (NDA) approved under section 505(c) of Federal Food, Drug and Cosmetic Act (FFDCA), AMP shall be inclusive of the average price paid for such drug by wholesalers for drugs distributed to retail community pharmacies. Therefore, as stated in a comment and response in the final rule, when a manufacturer is selling two versions of a product (both the AG and the brand) under the same NDA, in such cases the price of the drug would be blended for AMP, even if the manufacturer distinguishes the two products using different NDCs (81 FR 5260). Furthermore, as discussed in the final rule (81 FR 5260), CMS does not believe the manufacturer should determine a separate best price for each NDC simply because the two manufacturers of the same company identify the same drug using different NDCs.

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Date
FAQ ID
94811
FAQ Question
If a manufacturer markets both the branded drug and the AG version (in essence the same drug but marketed under two different NDCs) should the manufacturer blend sales and discounts of the branded drug and AG drug to result in a single AMP that would be reported for both the branded drug and AG drug? Further, can you please confirm that such a manufacturer should calculate Best Price as the lowest price between the branded drug and AG drug, and that lowest price for either would apply to both the branded an