The price that a country references and uses to set the price in their own country
What is a Reference Price?
100
The average price a product sells for (at brand level) over a given period of time.
What is Average Sales Price?
100
Region-specific List Price threshold, below which a proposed price is considered a price exception and requires global governance.
What is a Global List Floor?
100
The ANNUAL currency exchange rate established by Amgen Finance used for converting foreign currency to U.S. dollars.
What is the Budget FX rate?
100
Contractual agreements between Amgen and another entity where Amgen will provide price concessions based on clinical outcomes.
What is an Outcomes based Risk-share Contract?
200
The final purchase price paid by customers based on the list price net of price concessions
What is Net Price?
200
Discounts required by a customer that are non-negotiable; typically mandated by a government and are transparent.
What are Mandatory Discounts?
200
A proposed price requiring regional/global governance due to the price being below the floor or having cross regional IRP impact or being designed as an Outcome based Risk-share Contract.
What is a Price Exception?
200
Country in which Amgen has on the ground commercial operations.
What is an Affiliate market?
200
Regionally defined minimum List Price for each country at launch.
What is Target List Price?
300
An intermediary entity that buys Amgen products and sells to another customer in the country.
What is a Wholesaler?
300
Regionally defined minimum Net Price for each country for marketed products.
What is Country Rock Bottom?
300
Amgen’s primary decision-making body for global price governance.
What is the Global Pricing Committee?
300
% of revenue remaining after accounting for Cost of Sales. Cost of Sales does not include OPEX.
What is Gross Margin?
300
Contractual agreements between Amgen and another entity such as price-volume arrangements that are not based on clinical outcomes.
What is a Financial based Risk-share Contract?
400
The process by which one country references the list price of one or more other countries in order to determine the list price in their own country.
What is International Reference Pricing?
400
Non-mandatory discounts provided to a customer in order to secure desired access; may be transparent or non-transparent.
What are Discretionary Discounts?
400
The smartest and best looking team that supports the RPLs and GPLs with business case development required for global governance.
What is GPAG?
400
Country in which Amgen relies on a third party to market and sell Amgen products.
What are Distributor markets?
400
Specifies global list, net and supply price floors for each region; for launch products also outlines launch sequence and contracting strategy.
What is the Price Policy?
500
Refers to the ability of one country to view the price of another country.
What is Price Transperancy?
500
The price at which Amgen sells products to distributors/partners.
What is Supply Price?
500
Region-specific Net Price threshold, below which a proposed price is considered a price exception and requires global governance.
What is the Global Net Floor?
500
% of revenue remaining after accounting for Cost of Sales & OPEX. Cost includes OPEX (i.e. variable mfg. costs and allocated expense, labor and benefits)
What is Contribution Margin?
500
Regionally defined minimum Net Price for each country at launch.