Predictive Acquisition Cost (PAC)

The Most Accurate True Acquisition Cost

Developed by Glass Box Analytics, PAC addresses the shortcomings of the existing drug pricing standards, and could serve as a long-term drug pricing reimbursement benchmark. It leverages proven concepts from other industries and applies the power of predictive analytics to drug pricing.

By using various factors associated with the cost of a drug, PAC deploys a multi-dimensional predictive analytics model to track the acquisition cost of drugs with sufficient accuracy to support pricing activity. The statistical model is trained to synthesize various known attributes into an overall estimation of acquisition cost.

While each organization will decide which price type to use, and the industry as a whole will determine the new price standard, PAC comes closer to true acquisition cost than the alternatives, and meets all the criteria for becoming the industry-wide standard.

  • It is transparent, and has a genuine relation to the actual acquisition costs of drugs.
  • It is accessible, designed to be distributed to all parties in the pharmaceutical supply chain, and can be used for both drug pricing analytics and as a daily contractual reimbursement benchmark.
  • It is comprehensive, and supports brands and generics, including single-source generics as well as new drugs for which survey-based acquisition cost may not have been collected.
  • It is timely and adjusts as soon as any of the input factors adjust, synthesizes all relevant information available to it at any point in time.
  • It is immune to manipulation by design and maintains a robust monitoring system to detect any unusual movements in the factors, or attempts at manipulation. PAC is┬áretrained regularly to ensure it accurately captures changes and factors new data as soon as it is available.
  • And it is simple to administer.

To learn more about PAC, download white paper: Drug Price Types and Options for a Future Standard

Or view a recorded PAC webinar.

Independent validation tests showed that PAC consistently tracked the actual drug acquisition cost more effectively than AWP.

Further detailed information about the PAC model can be found at

To find out how to purchase PAC, please contact us.