Chapter 5 & 6- NAPSR REVISION EXAM
WITH QUESTIONS AND ANSWERS.
what are the 2 legal classifications of wholesalers? - ANS -primary wholesale
distributors
-secondary wholesale distributors
what is a primary wholesale distributor? - ANS buy most of their drugs directly from
manufacturers. Legally considered authorized distributors within the meaning of the
PDMA (Prescription Drug Marketing Act), because they usually have ongoing
relationships with manufacturers
what is a secondary wholesale distributor? - ANS buy from primary and other secondary
wholesalers as well as manufacturers but are not considered "authorized distributors" of
the manufacturers within the meaning of the PDMA
what are the 3 companies that account for nearly 90% of all drug wholesale sales? -
ANS -Cardinal Health
-McKesson HBOC
-AmerisourceBergen
who is normally responsible for selling to distributors? - ANS NAMs (national accounts
managers)
How often do secondary drug wholesale distributors buy their drugs directly from
manufactures? - ANS sometimes
(T/F) By FDA law, large chain pharmacies are not allowed to buy directly from drug
manufactures. - ANS false
What type of sale bypasses the need for intermediary distributors? - ANS manufacturer-
direct sales
what is a group purchasing organization (GPO)? - ANS an entity consisting of two or
more hospitals or other health care entities that negotiates contracts on behalf of its
members
Prescriptions dispensed by mail-order pharmacies are, on average, around
____________ than those dispensed by retail pharmacies. - ANS 3 times larger
which of the following is NOT a type of non-stock sale?
A-brokerage sales
B-dock-to-dock sales
C-drop shipments
, D-all of these are examples of non-stock sales - ANS D-all of these are examples of
non-stock sales
what is another term for rebates? - ANS after-market arrangements
(T/F) The PDMA is the Prescription Drug Manufacturers Association - ANS False; it is
the Prescription Drug Marketing Act
a company that owns and operates three or fewer pharmacies is an _______________
- ANS independent drug store
which section of a drug's package insert information covers the usual dosage range? -
ANS indications and usage
(T/F) Drug labels must include indications, usage information and contraindications -
ANS true
what should be included in the "description" section of a drug's package insert
information? - ANS -the drug's proprietary name and the established name
-qualitative and/or quantitative ingredient information
what is the definition of authorized distributor? - ANS any distributor of a prescription
drug that has a written agreement with the manufacturers of the prescription drug and
conducts at least 2 transactions with the manufacturer of the prescription drug within
any 24-month period
what is the definition of average wholesale price (AWP)? - ANS the AWP is a published
wholesale price or "list price" suggested by the manufacturer of the drug. Although the
AWP does not capture the actual transaction prices, it serves as a reference for pricing,
negotiations and reimbursements
what is the definition of brokerage? - ANS the combination of drop-ship and dock-to-
dock delivery services provided by wholesalers. In brokerage services, wholesalers do
not bring the product into their warehouses
what is the definition of buy-side margin? - ANS refers to the early payment discounts
and other earned or negotiated rebates and discounts received by wholesalers from
drug manufacturers. Increases int he value of wholesalers' inventories as
manufacturers' prices are also considered buy-side margins
what is the definition of chain drug store? - ANS a company that owns and operates four
or more pharmacies. Food store and mass merchandiser pharmacies are also
considered chain drug stores.
-ex. include Walgreen's, CVS, etc
WITH QUESTIONS AND ANSWERS.
what are the 2 legal classifications of wholesalers? - ANS -primary wholesale
distributors
-secondary wholesale distributors
what is a primary wholesale distributor? - ANS buy most of their drugs directly from
manufacturers. Legally considered authorized distributors within the meaning of the
PDMA (Prescription Drug Marketing Act), because they usually have ongoing
relationships with manufacturers
what is a secondary wholesale distributor? - ANS buy from primary and other secondary
wholesalers as well as manufacturers but are not considered "authorized distributors" of
the manufacturers within the meaning of the PDMA
what are the 3 companies that account for nearly 90% of all drug wholesale sales? -
ANS -Cardinal Health
-McKesson HBOC
-AmerisourceBergen
who is normally responsible for selling to distributors? - ANS NAMs (national accounts
managers)
How often do secondary drug wholesale distributors buy their drugs directly from
manufactures? - ANS sometimes
(T/F) By FDA law, large chain pharmacies are not allowed to buy directly from drug
manufactures. - ANS false
What type of sale bypasses the need for intermediary distributors? - ANS manufacturer-
direct sales
what is a group purchasing organization (GPO)? - ANS an entity consisting of two or
more hospitals or other health care entities that negotiates contracts on behalf of its
members
Prescriptions dispensed by mail-order pharmacies are, on average, around
____________ than those dispensed by retail pharmacies. - ANS 3 times larger
which of the following is NOT a type of non-stock sale?
A-brokerage sales
B-dock-to-dock sales
C-drop shipments
, D-all of these are examples of non-stock sales - ANS D-all of these are examples of
non-stock sales
what is another term for rebates? - ANS after-market arrangements
(T/F) The PDMA is the Prescription Drug Manufacturers Association - ANS False; it is
the Prescription Drug Marketing Act
a company that owns and operates three or fewer pharmacies is an _______________
- ANS independent drug store
which section of a drug's package insert information covers the usual dosage range? -
ANS indications and usage
(T/F) Drug labels must include indications, usage information and contraindications -
ANS true
what should be included in the "description" section of a drug's package insert
information? - ANS -the drug's proprietary name and the established name
-qualitative and/or quantitative ingredient information
what is the definition of authorized distributor? - ANS any distributor of a prescription
drug that has a written agreement with the manufacturers of the prescription drug and
conducts at least 2 transactions with the manufacturer of the prescription drug within
any 24-month period
what is the definition of average wholesale price (AWP)? - ANS the AWP is a published
wholesale price or "list price" suggested by the manufacturer of the drug. Although the
AWP does not capture the actual transaction prices, it serves as a reference for pricing,
negotiations and reimbursements
what is the definition of brokerage? - ANS the combination of drop-ship and dock-to-
dock delivery services provided by wholesalers. In brokerage services, wholesalers do
not bring the product into their warehouses
what is the definition of buy-side margin? - ANS refers to the early payment discounts
and other earned or negotiated rebates and discounts received by wholesalers from
drug manufacturers. Increases int he value of wholesalers' inventories as
manufacturers' prices are also considered buy-side margins
what is the definition of chain drug store? - ANS a company that owns and operates four
or more pharmacies. Food store and mass merchandiser pharmacies are also
considered chain drug stores.
-ex. include Walgreen's, CVS, etc
