Industry Terms Glossary

Latest Industry Terms Added

Industry Funding Fee (IFF)

A fee paid by pharmaceutical manufacturers that is a reimbursement to the VA for costs associated with operating the FSS program. As of April 1, 2008, the IFF equals 0.5% (one-half of one percent) of the total quarterly sales reported.
Related terms: Manufacturer, Federal Supply Schedule

Non-Innovator Drug

Prescription and non-prescription drugs marketed under an ANDA, insulin or a product that does not meet the criteria for an “S” or “I” drug, as defined above. Non-innovator drugs are coded as “N” drugs and are generally described as generic equivalents to “S” and “I” drugs.
Related terms: Innovator Drug

Innovator Drug

Prescription and non-prescription drugs marketed under a NDA or SNDA, and biologicals marketed under a Biological Licensing Agreement. Innovator drugs are coded as “S” drugs and “I” drugs. An “S” drug is a single-source innovator with no generic equivalents available. An “I” drug is an innovator multi-source drug, which is generally an “S” drug with generic equivalents available.
Related terms: Non-Innovator Drug

Customer Prompt Pay Discount (CPPD)

The discount typically offered to wholesalers for promptly paying invoices.
Related terms: Wholesaler

Administration Fees

Payments made by a manufacturer to an entity that represent the fair market value for a bona fide, itemized service actually performed on behalf of the manufacturer that the manufacturer would otherwise perform, or contract for, in the absence of the service arrangement. This fee must not be passed on in whole or in part to a client, customer or end-user of an entity, whether or not the entity takes title to the drug.
Related terms: Manufacturer, Bona Fide Service Fees