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Revisiting: List price versus negotiated price versus what you pay

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v.kjaerTL231 Jul 2025#1

Revisiting: List price versus negotiated price versus what you pay — setting out what I have, and where I think it stops being reliable.

Working notes on List price versus negotiated price rather than a conclusion. I would rather post the reasoning while it can still be corrected than post the answer once I am committed to it.

Everything below is checkable. Where I have taken a figure from somewhere else I have said where; where I have estimated, I have said that too.

32 likes 12mo
BV
bias_varianceTL4Biostatistician1 Aug 2025#2

Nothing to add on the substance. Thank you for taking the question at face value.

7 likes 12mo
IA
id.almeidaTL22 Aug 2025#3

I read the opening post twice before replying, because I had assumed the opposite.

The cost of an independent submission is worth stating in these threads, because it is the main reason people do not do it.

1 like 12mo
BD
baseline_driftTL2Analytical chemist2 Aug 2025#4

Post #3 answers the question as asked. The question underneath it is different.

Bulk pricing tiers are published by some suppliers and negotiated by others, and asking costs nothing.

0 likes 12mo
GR
g.radichTL23 Aug 2025#5

A price well below the rest of the market is a fact rather than a finding, and it is worth noting without concluding from it.

12 likes 12mo
TY
two_year_lineTL3Regular3 Aug 2025#6

Comparing a licensed product's price to a research-use-only preparation's price is comparing two different things, and the difference is most of the explanation.

I would want a second opinion before relying on that.

4 likes 12mo
SK
s.kuuselaTL24 Aug 2025#7
bias_variance, post #2: Nothing to add on the substance. Thank you for taking the question at face value. Go to post

The number people quote for List price versus negotiated price is a central estimate presented without its interval, and the interval is wide enough that the estimate is nearly uninformative on its own.

0 likes in reply to #2 12mo
B
batchlogTL3Regular4 Aug 2025#8

Narrowing post #7, because the general version has more than one answer.

List price versus negotiated price was covered in the wiki last year and the page has a review date on it, which is a better starting point than my memory of a thread.

0 likes 12mo
HB
h.brandtTL25 Aug 2025 · edited#9

Noted, and thank you for writing it out rather than summarising it.

7 likes 12mo
RV
r.venkatesanTL3Wiki editor5 Aug 2025#10

Where a price includes consultation, device and follow-up, saying so makes a comparison possible. Most quoted figures do not.

1 like 12mo
VB
va.baptistaTL25 Aug 2025#11

Adding the measurement that post #8 says would settle it.

Cost per milligram is the only comparison that survives format differences, but even then it needs care. A pen and a vial are not the same product and cannot be compared on price per milligram alone because dead volume, wastage, and number of doses actually obtainable differ.

I would put a moderate confidence on that and no more.

2 likes 12mo
TV
t.vasquezTL4 Moderator6 Aug 2025#12

Noted, and I have changed what I was going to do on the strength of it.

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SD
s.dziedzicTL26 Aug 2025 · edited#13

One caution on List price versus negotiated price: everything above assumes the underlying documentation is what it claims to be. That assumption is doing real work and is rarely stated.

22 likes 12mo
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so.cardosoTL26 Aug 2025#14
s.kuusela, post #7: The number people quote for List price versus negotiated price is a central estimate presented without its interval, and the interval is wide enough that the estimate is nearly uninformative on its own. Go to post

Larger orders shift risk as well as price, because more of your material then comes from one lot.

0 likes in reply to #7 12mo
HK
h.karlsenTL27 Aug 2025#15
t.vasquez, post #12: Noted, and I have changed what I was going to do on the strength of it. Go to post

Whatever the answer on List price versus negotiated price turns out to be, the method for getting there is the same: state the assumption, do the arithmetic in public, invite the correction.

1 like in reply to #12 12mo
CA
c.adebayoTL27 Aug 2025#16

The version of List price versus negotiated price that I was taught turned out to be a teaching simplification. Useful, and not true in the way I had assumed it was.

6 likes 12mo
MI
m.ivaturiTL28 Aug 2025#17

Price variation between pharmacies: identical prescriptions can cost different amounts at different pharmacies because pharmacies negotiate individually with insurers and manufacturers.

15 likes 12mo
DB
d.barrosTL28 Aug 2025#18
va.baptista, post #11: Adding the measurement that post #8 says would settle it. Cost per milligram is the only comparison that survives format differences, but even then it needs care. A pen and a vial are not the same product and cannot be compared on price per milligram alone because dead volume, wastage, and number of doses actually obtainable differ. I… Go to post

Coming back to post #14, because the follow-up matters more than the original answer.

List prices versus negotiated prices: the price a pharmaceutical company publishes and the price an insurance company or pharmacy actually pays differ substantially. List price is not what anyone pays.

That is all I can say without guessing.

30 likes in reply to #11 12mo
SB
s.balogunTL28 Aug 2025#19

Useful. I had the fact and not the reason, which turns out to be the important half.

9 likes 12mo
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f.demirTL2Regular9 Aug 2025 · edited#20

Landed cost including shipping, fees and currency conversion is what you actually pay, and quotes that look identical frequently are not.

21 likes 12mo
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FFaulknerTL3Regular9 Aug 2025#21

Answering the question post #20 raises rather than the one it answers.

Pharmacy acquisition cost: a pharmacy pays less than the patient pays, even at insurance rates. That margin is where the pharmacy's costs and profit live.

The interesting part of this is the exception, and I do not understand the exception.

24 likes 12mo
VO
v.okonkwoTL29 Aug 2025#22
c.adebayo, post #16: The version of List price versus negotiated price that I was taught turned out to be a teaching simplification. Useful, and not true in the way I had assumed it was. Go to post

I will take the caveat as seriously as the claim, which is the point of putting it there.

11 likes in reply to #16 12mo
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TamburelloTL2Member10 Aug 2025#23
t.vasquez, post #12: Noted, and I have changed what I was going to do on the strength of it. Go to post

I changed my mind about List price versus negotiated price after someone here asked me for the source and I could not produce one. That is worth saying out loud because it is the ordinary way it happens.

1 like in reply to #12 12mo
LL
l.lundgrenTL210 Aug 2025#24

Post #23 is the version of this I will quote in future. One addition.

Where a price is quoted per vial, the fill has to be stated for the comparison to mean anything.

Written from notes rather than memory, which is why the numbers are specific.

0 likes 12mo
CI
c.inglethorpeTL3Regular10 Aug 2025#25

Price differences within a market are usually about scale, documentation and logistics rather than about anything mysterious.

32 likes 12mo
RM
r.molnarTL210 Aug 2025#26

Source for the List price versus negotiated price figure, since it was asked for. It is in the discussion rather than the abstract, which is why the version circulating is stronger than the paper is.

Reading the surrounding paragraph is worth the two minutes. The authors are more careful than their summarisers.

16 likes 12mo
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CSagredoTL3Regular11 Aug 2025 · edited#27
m.ivaturi, post #17: Price variation between pharmacies: identical prescriptions can cost different amounts at different pharmacies because pharmacies negotiate individually with insurers and manufacturers. Go to post

I had written a reply contradicting post #23 and deleted it. Here is what survived.

A request rather than an answer: could whoever has the primary source for List price versus negotiated price post it? I have seen the claim three times this month and each version had lost a qualifier.

3 likes in reply to #17 12mo
HR
h.ramosTL211 Aug 2025#28

Confirming post #27 from a second method, which matters more than confirming it from a second person.

The most useful pricing posts here are the ones that show the arithmetic rather than the conclusion.

It is one reading of the data and not the only reasonable one.

0 likes 12mo
ME
m.eriksenTL211 Aug 2025#29

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