Pfizer, GSK, Sanofi and Teva are increasing the prices of some drugs by less than 10 percent, according to a new report.
Drug makers, including Pfizer Inc, Sanofi SA and GlaxoSmithKline Plc, plan to increase the prices of more than 300 drugs in the United States by Jan. 1, according to pharmaceutical companies and data analyzed by healthcare research firm 3 Axis Advisors.
The rises come as pharmaceutical giants come reeling from the effects of the COVID-19 pandemic, which has reduced doctor visits and the demand for some drugs. They are also fighting new Trump administration drug pricing rules that would reduce the industry’s profitability.
The companies kept their price increases at 10 percent or less, and the largest pharmaceutical companies that raised prices to date, Pfizer and Sanofi, kept nearly all of their price increases at 5 percent or less, 3 Axis said. 3 Axis is a consultancy that works with pharmacy groups, health plans and foundations in drug pricing and supply chain issues.
GSK increased prices for two vaccines – Shingrix shingles vaccine and Pediarix diphtheria, tetanus and pertussis vaccine – by 7 percent and 8.6 percent, respectively, 3 Axis said.
Teva Pharmaceuticals Inc increased the prices of 15 drugs, including Austedo, which treats rare neurological conditions, and the asthma steroid Qvar, which together generated more than $ 650 million in sales in 2019 and saw price increases of between 5 and 6 percent. Teva raised the prices for some drugs, including the muscle relaxant Amrix and narcolepsy treatment Nuvigil, by as much as 9.4 percent.
More price hikes are expected to be announced on Friday and early January.
COVID-19
In 2020, pharmaceutical companies raised the prices of more than 860 drugs by an average of about 5 percent, according to 3 Axis. Drug price increases have slowed significantly since 2015, in terms of the size of the hikes and the number of drugs affected.
The increases are as pharmaceutical companies like Pfizer develop vaccines for COVID-19 in record time. The increases could help make up for lost earnings as doctor visits and new prescriptions plummeted during the global lockdown.
Pfizer plans to increase the prices of more than 60 drugs by 0.5 to 5 percent. Those include an increase of about 5 percent over some of the top sellers such as rheumatoid arthritis treatment Xeljanz and cancer drugs Ibrance and Inlyta.
Pfizer plans to increase the prices of more than 60 drugs by 0.5 to 5 percent [File: Mario Tama/Getty Images]
Pfizer said it had adjusted its drug list prices by about 1.3 percent across all products in its portfolio, in line with inflation.
“This modest increase is needed to support investments that allow us to continue to discover new drugs and deliver those breakthroughs to the patients who need them,” spokeswoman Amy Rose said in a statement, noting in particular. COVID-19 vaccine that the company developed. with the German BioNTech SE.
It said net prices, excluding pharmacy benefit administrator discounts and other discounts, have actually fallen over the past three years.
France’s Sanofi plans to raise prices for a number of vaccines by 5 percent or less and will announce more price increases later in January, spokesman Ashleigh Koss said.
None of the company’s price increases will exceed its projected US health spending growth rate of 5.1 percent, Koss said.
Political pressure
Lowering prices for prescription drugs in the US – which are among the highest in the world – was a focus of US President Donald Trump, after making it a key promise of his 2016 campaign. He issued several executive orders designed to lower prices in late 2020, but their effect may be limited by legal challenges and other issues.
A federal judge in December blocked a Trump last-minute government rule aimed at lowering drug prices that would be introduced in early 2021. It has been challenged by pharmaceutical industry groups including PhRMA, the country’s largest pharmaceutical trade group.
President-elect Joe Biden has also pledged to cut drug costs and allow Medicare, a US government health insurance program, to negotiate drug prices. He is getting the backing of Congressional Democrats to pass such legislation, which the Congressional Budget Office has said could cost the industry more than $ 300 billion by 2029.