Statistics) for that year exceeds such component for the base year. (D) Compounded percentages For purposes of subparagraph (A), the first compounded percentage and second compounded percentage shall be determined in accordance with the following table: Number of years in applicable period First compounded percentage Second compounded percentage 2 years 32.35 44.00 3 years 52.09 72.80 4 years 74.90 107.36 5 years 101.14 148.83. (E) Applicable period and base year (i) Applicable period The applicable period shall be the lesser of— (I) the 5 most recently completed calendar years, (II) any completed calendar years beginning after March 29, 2017, or (III) any completed calendar years in which the taxable prescription drug was sold in commerce. (ii) Base year The base year shall be the calendar year immediately preceding the applicable period. (3) Cumulative price spike revenue For purposes of paragraph (1), the cumulative price spike revenue for any taxable prescription drug shall be an amount equal to— (A) an amount equal to the product of— (i) an amount (not less than zero) equal to— (I) the average price of such drug in commerce for the most recently completed calendar year, minus (II) the average price of such drug in commerce for the base year, and (ii) the total number of units of such drug which were sold in commerce in the most recently completed calendar year, minus (B) the adjustment amount, if any, determined under section 202(a)(1)(F)(iii) of the Improving Access To Affordable Prescription Drugs Act for such calendar year. (d) Definitions For purposes of this section— (1) Taxable prescription drug The term taxable prescription drug means a prescription drug (as defined in section 202(a)(1)(D) of the Improving Access To Affordable Prescription Drugs Act ) which has been identified by the Inspector General of the Department of Health and Human Services, under section 202(a)(3)(B)(i) of such Act, as being subject to a price spike. (2) Other terms The terms applicable entity , average price , price spike ,