CHAPTER 5 /NAPSR /QUESTIONS AND
ANSWERS RATED 100!!! /2025 UPDATE.
1. The two legal classifications of wholesalers?
Answer: Primary Wholesale Distributors and Secondary Wholesale Distributors
Explanation: Wholesalers in the pharmaceutical industry are classified into primary wholesale
distributors, which buy directly from manufacturers, and secondary wholesale distributors, which
may buy from both primary wholesalers and manufacturers.
2. Buy most of the drugs directly from manufacturers, legally considered authorized
distributors within the meaning of PDMA?
Answer: Primary Wholesale Distributors
Explanation: Primary wholesale distributors are those who buy drugs directly from
manufacturers and are legally considered authorized distributors under the Prescription Drug
Marketing Act (PDMA).
3. PDMA stands for?
Answer: Prescription Drug Marketing Act
Explanation: The Prescription Drug Marketing Act (PDMA) was enacted to regulate the
distribution of prescription drugs, particularly to prevent counterfeit drugs and to ensure that
drugs are distributed properly.
4. Buy from primary and other secondary wholesalers as well as manufacturers but are not
considered "authorized distributors" of the manufacturers with the meaning of PDMA?
Answer: Secondary Wholesale Distributors
Explanation: Secondary wholesale distributors buy from primary wholesalers, other secondary
wholesalers, and manufacturers but are not considered authorized distributors under PDMA,
meaning they lack the direct relationship with manufacturers.
5. Distributors are normally the responsibility of who?
Answer: NAM (National Account Managers)
Explanation: National Account Managers (NAMs) are responsible for overseeing distributors,
managing relationships with wholesalers, and handling key accounts within the distribution
network.
, 6. How many companies account for nearly 90% of all drug wholesale sales? Who are
they?
Answer: 3 companies: Cardinal Health, McKesson HBOC, AmerisourceBergen
Explanation: Three major companies—Cardinal Health, McKesson HBOC, and
AmerisourceBergen—dominate the wholesale pharmaceutical market, accounting for nearly
90% of sales.
7. Any distributor of a prescription drug that has a written agreement with the
manufacturers of the prescription drug and conducts at least two transactions with the
manufacturer of the prescription drug within any 24-month period?
Answer: Authorized Distributor
Explanation: An authorized distributor has a formal agreement with manufacturers and engages
in at least two transactions with them within a 24-month period, qualifying them under PDMA
regulations.
8. Is a published price or "list price" suggested by the manufacturer of the drug, this
doesn't capture the actual transaction prices, but serves as a reference for pricing,
negotiations, and reimbursements?
Answer: AWP (Average Wholesale Price)
Explanation: The Average Wholesale Price (AWP) is the manufacturer’s suggested price for a
drug, which is often used as a reference point for pricing, negotiations, and reimbursements,
though it may not reflect the actual transaction price.
9. The combination of drop-ship and dock to dock delivery services provided by
wholesalers. Wholesalers do not bring the product into their warehouse?
Answer: Brokerage
Explanation: In brokerage, wholesalers arrange for the product to be shipped directly from the
manufacturer to the end customer, without ever holding the product in their warehouse.
10. Refers to the early payment discounts and other earned or negotiated rebates and
discounts received by wholesalers from drug manufacturers. Increases in the value of
wholesalers' inventories as manufacturers' prices rise are also considered this?
Answer: Buy-side Margin
Explanation: The buy-side margin refers to the profit wholesalers gain from early payment
discounts, negotiated rebates, and increases in inventory value due to rising manufacturer prices.
ANSWERS RATED 100!!! /2025 UPDATE.
1. The two legal classifications of wholesalers?
Answer: Primary Wholesale Distributors and Secondary Wholesale Distributors
Explanation: Wholesalers in the pharmaceutical industry are classified into primary wholesale
distributors, which buy directly from manufacturers, and secondary wholesale distributors, which
may buy from both primary wholesalers and manufacturers.
2. Buy most of the drugs directly from manufacturers, legally considered authorized
distributors within the meaning of PDMA?
Answer: Primary Wholesale Distributors
Explanation: Primary wholesale distributors are those who buy drugs directly from
manufacturers and are legally considered authorized distributors under the Prescription Drug
Marketing Act (PDMA).
3. PDMA stands for?
Answer: Prescription Drug Marketing Act
Explanation: The Prescription Drug Marketing Act (PDMA) was enacted to regulate the
distribution of prescription drugs, particularly to prevent counterfeit drugs and to ensure that
drugs are distributed properly.
4. Buy from primary and other secondary wholesalers as well as manufacturers but are not
considered "authorized distributors" of the manufacturers with the meaning of PDMA?
Answer: Secondary Wholesale Distributors
Explanation: Secondary wholesale distributors buy from primary wholesalers, other secondary
wholesalers, and manufacturers but are not considered authorized distributors under PDMA,
meaning they lack the direct relationship with manufacturers.
5. Distributors are normally the responsibility of who?
Answer: NAM (National Account Managers)
Explanation: National Account Managers (NAMs) are responsible for overseeing distributors,
managing relationships with wholesalers, and handling key accounts within the distribution
network.
, 6. How many companies account for nearly 90% of all drug wholesale sales? Who are
they?
Answer: 3 companies: Cardinal Health, McKesson HBOC, AmerisourceBergen
Explanation: Three major companies—Cardinal Health, McKesson HBOC, and
AmerisourceBergen—dominate the wholesale pharmaceutical market, accounting for nearly
90% of sales.
7. Any distributor of a prescription drug that has a written agreement with the
manufacturers of the prescription drug and conducts at least two transactions with the
manufacturer of the prescription drug within any 24-month period?
Answer: Authorized Distributor
Explanation: An authorized distributor has a formal agreement with manufacturers and engages
in at least two transactions with them within a 24-month period, qualifying them under PDMA
regulations.
8. Is a published price or "list price" suggested by the manufacturer of the drug, this
doesn't capture the actual transaction prices, but serves as a reference for pricing,
negotiations, and reimbursements?
Answer: AWP (Average Wholesale Price)
Explanation: The Average Wholesale Price (AWP) is the manufacturer’s suggested price for a
drug, which is often used as a reference point for pricing, negotiations, and reimbursements,
though it may not reflect the actual transaction price.
9. The combination of drop-ship and dock to dock delivery services provided by
wholesalers. Wholesalers do not bring the product into their warehouse?
Answer: Brokerage
Explanation: In brokerage, wholesalers arrange for the product to be shipped directly from the
manufacturer to the end customer, without ever holding the product in their warehouse.
10. Refers to the early payment discounts and other earned or negotiated rebates and
discounts received by wholesalers from drug manufacturers. Increases in the value of
wholesalers' inventories as manufacturers' prices rise are also considered this?
Answer: Buy-side Margin
Explanation: The buy-side margin refers to the profit wholesalers gain from early payment
discounts, negotiated rebates, and increases in inventory value due to rising manufacturer prices.
