Accounting Finance:Rebate Process

Monthly Profit Sharing (‘MPS’)

Rebates generated from the pharmaceutical generic formulary program referred to as the Class 010 Program (‘Program’). All generic molecules included in the Program are assigned a rebate percentage based on the professional allowance (‘PA’) percentage received from the Program vendors for these generic molecules.

Professional allowance percentage is based on cost of the molecule from the vendor whereas the MPS percentage is based on the selling price of molecule to shareholders. For example; a molecule with a cost of $100, a professional allowance of 50% and a selling price $108, then uniPHARM receives a PA of $50 from the vendor and pays a MPS at 45.00% based on selling price or $48.60. For set-up purposes CURE – 45.00% and VERE – 50.00%.

CURE – customer rebate percentage, vendor PA % less the ‘tens’ digit; e.g. 50% - 5% = 45% VERE – vendor rebate percentage, PA % as provided by the Class 010 vendor

Brand up-charge rebate (Brand Rebate) The Rebate paid on brand pharmaceuticals with an eight percent (8%) up-charge. The rebate percentage plus the two percent (2%) cash discount nets the up-charge on these brand pharmaceuticals to either 3.25% if a store’s total brand pharmaceuticals sales are less than $1.0 million or 2.75% if greater than $1.0 million. Current rebate percentage is either 2.40% or 2.85% based on pharmaceutical sales.