Great find by Mikey.My understanding is that the Average...

Great find by Mikey.

My understanding is that the Average Wholesale Price (AWP) is a reference price. The Wholesale Acquisition Cost (WAC) is what wholesalers generally pay, which is commonly 20-30% lower than the AWP. Distributors usually receive a further discount from WAC, commonly 10-30%.

Wholesalers' primary role is logistics - bulk buying, storage and moving large quantities of product to various retailers. Distributors are more engaged along the supply chain, adding value via marketing, sales support and direct relationships with retailers or end-users. i.e. a broader role, this can provide more access in harder to reach markets.

Prime Therapeutics, as a pharmacy benefit provider (middleman between insurers, pharmacies and manufacturers), has access to a vast network of pricing data (competing benchmarks, predictive models and possibly early access to pricing discussions). If we assume Prime's published AWP of US$1,161/script is correct, WAC (for wholesalers) should be ~US$871/script. The net price to distributors should be ~US$696/script. BOT can sell to both of these. If we assume a 70/30 wholesaler/distributor split (reasonable given PAH is a relatively common condition requiring broad access), the weighted average realised price for BOT should be ~US$819/script.

Significantly (~70%) higher than previous market guidance! A premium price for a premium product (more effective, less side effects, easier to source and use).

Confirmation from Management of pricing and strategy would assist.