Is AWP based on actual transactional, marketplace price data?

The Average Wholesale Price (AWP) is not based on actual transactional or marketplace price data. Instead, AWP is a benchmark used primarily in the pharmaceutical industry to determine reimbursement levels for medications and is often derived from pricing lists produced by pharmaceutical companies or publications. This price is intended to represent the average price at which wholesalers sell medications to pharmacies, but it does not reflect actual sales transactions. Therefore, while many may view AWP as a representation of what pharmacies pay, it does not incorporate real-world price fluctuations or discounts that occur in the marketplace.

Considering this, the assertion that AWP is based on actual transactional data is incorrect, leading to the conclusion that the statement is false.