New year, new prices: at least 350 drugs in USA to see price increases in January
Drugmakers such as Pfizer, GSK, BMS, AstraZeneca, and Sanofi are planning to raise prices for at least 350 unique drugs in the United States in early January.
According to data analysed and released by research firm 3 Axis Advisors, drugmakers are predicted to raise prices on over 350 unique drugs in the United States in early January, including pharmaceutical companies such as Pfizer Inc., GSK, BMS, and AstraZeneca.
With the Biden Administration’s Inflation Reduction Act (IRA), the United States’ Medicare health program will be allowed to negotiate drug prices directly beginning in 2026. With rising inflation and supply chain challenges already leading to increased manufacturing costs, drugmakers have already begun increasing prices on more than 1400 in 2022, the greatest number of increases since 2015.
President of 3 Axis, Antonio Ciaccia, commented that “Drugmakers have to take a harder look at calibrating those launch prices out of the gate so they don’t box themselves into the point where in the future, they can’t price increase their way back into profitability.” Drugmakers have largely confined price increase to 10% or lower and data published by 3 Axis and drug-pricing non-profit 46brooklyn have indicated a price increase of between 5–7% in the last year. The IRA is set to continue a focus on launching drugs at higher prices.
Several reasons given by pharmaceutical companies such as Pfizer, Sanofi, and BMS include the increase in list price of drugs for CAR-T cell therapies, personalised cell therapies, and autoimmune disease therapies, among others. Other market conditions taken into consideration, as claimed by AstraZeneca spokesman Brendan McEvoy, include clinical value, patient population size, government/payer coverage requirements, patient affordability, and market competition. AstraZeneca is set to raise prices by about 3% on Calquence (a blood cancer treatment), Tagrisso (a non-small cell lung cancer drug), and Fasenra (a drug to treat asthma).
Source: Exclusive: Drugmakers to raise prices on at least 350 drugs in U.S. in January | Reuters
Related News
-
News Pharmapack Awards 2024 Patient-Centric Design Award Winner – Dr Ferrer BioPharma
The 2024 Pharmapack Awards celebrated the best in innovation and design for the pharmaceutical packaging and drug delivery industry on January 24, 2024. -
News Women in Pharma: Minding the Gap at Pharmapack 2024
2024 marks the first year Pharmapack will host a Diversity track dedicated to bridging the gap within the pharmaceutical packaging and drug delivery sector. The track includes a panel discussion on 'Enabling Diversity in the Workplace,' focused... -
News Pharmapack Awards 2024 - Celebrating Packaging and Drug Delivery Innovation
The 2024 Pharmapack Innovation Awards ceremony celebrated the best in pharmaceutical packaging and drug delivery innovation at all levels. The awards were held on January 24, 2024 at the Paris Expo Porte de Versailles. -
News 2024 Pharma Industry Trends Outlook: Collaboration, Market Maturity, and Digital Futures
The annual CPHI Online 2024 Pharma Trends Outlook, in partnership with Arvato Systems, identifies 12 key industry trends shaping the life sciences industry in the coming year. -
News New Novo Nordisk AI hub for drug discovery to open in London, UK
Danish pharmaceutical giant Novo Nordisk will be opening an AI-based research facility in the heart of London to advance drug discovery operations. -
News BioNTech to begin mRNA vaccine manufacturing in Rwanda by 2025
German biotechnology company BioNTech has stated their intentions to begin production at their mRNA vaccine factory in Rwanda by 2025, which will mark the first foreign mRNA vaccine manufacturing site on the continent of Africa. -
News Women in Pharma: Looking back on 2023 and moving forward to 2024
In this monthly series, we interview women from across the pharmaceutical industry and supply chain to discuss the importance of gender diversity in healthcare, the workplace, and beyond. -
News CPHI Barcelona 2023: Partnering for Success – Managing Outsourcing Relationships to Optimise Manufacturing Operations
During CPHI Barcelona 2023, insightful content sessions offered attendees the chance to explore trending topics with expert speakers and panellists. Here, we summarise what the pharma industry and supply chain are talking about the most.
Position your company at the heart of the global Pharma industry with a CPHI Online membership
-
Your products and solutions visible to thousands of visitors within the largest Pharma marketplace
-
Generate high-quality, engaged leads for your business, all year round
-
Promote your business as the industry’s thought-leader by hosting your reports, brochures and videos within your profile
-
Your company’s profile boosted at all participating CPHI events
-
An easy-to-use platform with a detailed dashboard showing your leads and performance