January 05, 2024
Pharmaceutical Corporations Expected to Raise Prices on Over 500 Drugs This Month
Some of the largest American pharmaceutical companies, including Pfizer, Sanofi, and Takeda Pharmaceutical, plan to raise prices on over 500 drugs starting this month according to data analyzed by healthcare research firm 3 Axis Advisors. The price hikes will affect over 140 brands of drugs.
Pfizer, including the Hospira arm of the company, is responsible for the most price increases this month, with plans to hike prices on 146 drugs in total – more than a quarter of all price increases. Another major company, Takeda Pharmaceutical, has 53 price increases planned, ranking it second to Pfizer in number of price hikes.
January has consistently been the month with the most drug price increases, so in all likelihood more will be announced in the coming weeks. The median price increase remains around 5%.
The price increases coincide with President Biden’s policies aimed at reigning in pharmaceutical price gouging, including allowing Medicare to negotiate directly with pharmaceutical companies to lower prices beginning in 2026. The publication of discounted prices for 10 high-priced drugs will come in September.
The administration has also combatted major price hikes by requiring that drug companies pay rebates to Medicaid when prices rise faster than the inflation rate.
“The pharmaceutical industry’s greed has no bounds and seniors need protection,“ said Robert Roach, Jr., President of the Alliance. “President Biden has taken strong action and some critical drug prices are going down but more is needed. Patient needs must come before corporate profits.”