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Elsevier
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Predictive Acquisition Cost

Data-science derived drug acquisition cost to support business analytics

Predictive Acquisition Cost applies the power of predictive analytics to drug pricing. Independent validation by key industry stakeholders confirms that PAC consistently tracks actual drug acquisition cost more effectively than price benchmarks like AWP.

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Discover Predictive Acquisition Cost

Meets industry identified criteria for an optimal drug pricing benchmark

  • Comprehensiveness — all drugs are covered

  • Timeliness — reflects price movement in a timely way

  • Accessibility — available to all stakeholders, easy to access

  • Immune to Manipulation — no single input overly influences output

  • Accuracy — reflects ground truth

  • Transparency — understand how the drug price is established

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Supports drug pricing analytic problems

The PAC methodology helps stakeholder operate in a complex environment by offering turn-key solutions for solving common drug pricing problems.

  • Establishes a pricing range that is closely aligned to a drug’s acquisition cost to help determine performance of pricing contracts, control costs and support reimbursement rates.

  • Utilize a fair and balanced method to justify your pricing strategies, improve network satisfaction and reduce appeals.

  • Quickly identify reimbursement outliers that warrant price adjustment to improve bottom-line performance, improve negotiations.

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Delivering value across the pharmaceutical industry

  • Rely on a more stable starting point to determine usual and customary (U&C) to set cash pricing while considering price elasticity, profitability and sustained insured revenue.

  • Optimize your MAC list, meet regulatory requirements for transparency and identify drug groups where pricing is outside an acceptable range to help justify pricing strategies.

  • Take advantage of historical data across generic drug categories to price drugs, understand historical pharmacy acquisition costs and analyze historical trends to forecast future trends.

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Utilize Gini coefficient to anticipate price movement and drug shortages

Borrowing a concept from econometrics called the Gini coefficient you can gain deep insights into price and price movement by looking at how concentrated versus widely available a given drug is across manufacturers.

  • Evaluate changes in the Gini coefficient to understand changes in drug availability in specific manufacturers in a drug group and anticipate or explain pricing movement.

  • Identify drugs changing from single source to multi-source or vice-versa to anticipate product demand and impacts on products changing from brand to generic products.

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Why Predictive Acquisition Cost

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Optimal drug pricing benchmark

An analytics model to provide insight into a drug’s acquisition cost
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Supports drug pricing analytic problems

Turn-key solutions for solving common drug pricing problems
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Delivers value across pharmaceutical industry

Supports pricing activities throughout the pharmacy supply chain
drugs in tablet and pill form

Anticipate price movement and drug shortages

Utilizes Gini coefficient to support insight into price movement

Related resources

Learn more about how our Drug Information Solutions can help you support your care teams

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