Big pharma billionaires like Pfizer, GlaxoSmithKline, Bristol Myers Squibb, AstraZeneca and Sanofi are already set to raise prices on more than 350 drugs in early January, Reuters reported.
The information is based on data analyzed by healthcare research firm 3 Axis Advisors, which says the increases are expected to come as the pharmaceutical industry prepares for the Inflation Reduction Act (IRA). Biden Administration, which allows the government’s Medicare health program to directly negotiate prices for some drugs starting in 2026.
In addition, it is argued that the sector is facing high inflation, problems in the supply chain and restrictions that have caused higher costs in the manufacture of medicines.
Reuters notes that drugmakers have kept increases to 10% or less, after the industry was criticized for too many increases in the middle of the last decade.
Antonio Ciaccia, president of 3 Axis, noted that manufacturers launch their drugs at higher prices in line with the annual price increases faced by the industry.
“Drug manufacturers need to take a closer look at calibrating those launch prices early on… so that they don’t lock themselves into the point where, in the future, they can’t raise prices to become profitable again,” he said. Ciaccia.
According to the report, it is likely that other drugs will be added to the list of increases in the course of January, since the first month of the year is usually the most important for pharmaceutical companies to increase prices.
A Pfizer spokesperson explained that drug and vaccine prices in 2023 are well below headline inflation at about 3.6%, saying the increases are necessary to support investments in drug discovery.
A Sanofi spokesperson said the 2023 prices are consistent with its approach to responsible pricing, compliance with government policies and the need to respond to changing trends in the market.
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