Expensive Drugs For Americans In 2024? Drugmakers Including Pfizer, Sanofi Mull Price Increase In January

Just as large pharma companies prepare a showdown with Medicare's newfound power to negotiate down drug prices, several major drug companies are reportedly gearing up to implement price increases on more than 500 drugs in the U.S. in early January.

Companies including Pfizer Inc PFE, Sanofi SA SNY, and Takeda Pharmaceutical Co Ltd TAK are expected to participate in the move that comes as part of the pharmaceutical industry's preparation for the forthcoming publication of significantly discounted prices for ten high-cost drugs by the Biden Administration in September. 

Additionally, the industry faces challenges posed by elevated inflation rates and escalating manufacturing costs.

Healthcare research firm 3 Axis Advisors' data indicates that amidst these developments, three companies, including GSK Plc GSK, are anticipated to decrease prices on at least 15 unique drugs in January, Reuters reported. 

This follows GlaxoSmithKline's recent announcement of price reductions on specific asthma, herpes, and anti-epileptic drugs slated for 2024.

The evolving landscape also aligns with efforts by various companies earlier this year to decrease insulin prices to avoid penalties outlined in the 2021 American Rescue Plan Act. 

Despite heightened inflation rates, drugmakers have generally restrained price increases to 10% or lower, steering away from the sharp hikes seen in the past. 

Antonio Ciaccia, President of 3 Axis, anticipates significant impacts on former blockbuster insulin drugs due to the prevailing policy changes.

The adjustments in drug prices primarily affect list prices, excluding rebates to pharmacy benefit managers and other discounts. Despite concerns and changing dynamics, drugmakers have maintained a consistent median price increase of around 5% since 2019, indicating a cautious approach.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

Image by Arek Socha from Pixabay