Why Are Drug Manufacturers Cutting List Prices? Inside the 2026 WAC Reduction Trend

In January 2026, seven brand-name drugs without generic competition took Wholesale Acquisition Cost (WAC) reductions averaging 50%. What’s driving the shift? The Medicare Drug Price Negotiation Program and Maximum Fair Price (MFP) implementation are part of the story, but WAC reductions can also improve gross-to-net (GTN) performance and net profitability, even for brands not selected for negotiation. This whitepaper breaks down how lowering WAC impacts payer rebates, patient support programs, 340B and government rebates, and IRA liability, plus the risks to weigh first.