Author: Michael Erman
NEW YORK (Reuters) – Drugmakers plan to raise U.S. prices for at least 250 brand-name drugs, including Pfizer (NYSE: ) COVID-19 treatment Paxlovid, Bristol Myers (NYSE: ) Squibb Cancer Cell Therapies and Vaccines of France Sanofi (NASDAQ: ) in early 2025, according to data analyzed by healthcare research firm 3 Axis Advisors.
Almost all drug price increases are below 10% – most well below. The median increase in the prices of drugs that go up on January 1 is 4.5%, which is in line with the median of all price increases last year.
The increases refer to the stated prices, which do not include rebates to pharmacy managers and other discounts.
Bigger drug markups were once far more common in the US, but drugmakers have scaled back in recent years after the price hikes drew sharp criticism in the middle of the last decade.
“Drug manufacturers no longer have much real estate to increase prices over time, which means that taking more leeway on pricing in the market is really the only option they have in the face of extended penalties for year-over-year price increases,” 3 Axis President Antonio Ciaccia said .
A Reuters analysis of new drug prices found that pharmaceutical companies launched new US drugs in 2023 at prices 35% higher than in 2022.
The more than 250 drug price hikes represent an increase from December 29 last year, when drugmakers unveiled plans to raise prices for more than 140 drug brands.
Drug manufacturers are also lowering some prices on January 1. Merck & Co (NYSE: ) plans to cut the list price of its heavily discounted diabetes drugs Januvia and Janumet “to bring list price more in line with net price.”
WE PAY THE MOST
The U.S. pays more for prescription drugs than any other country, and President-elect Donald Trump has promised to reduce drug costs by focusing on middlemen in the U.S. health care system.
Other drugmakers are likely to announce more drug price increases during January — historically the biggest month for drugmakers to raise prices.
Pfizer raised the prices of the most drugs from the latest list – more than 60 drugs. Along with the 3% increase in the price of Paxlovid, the company raised the prices of drugs including migraine treatment Nurtec and cancer drugs Adcetris, Ibrance and Xeljanz by between 3% and 5%.
“Pfizer has adjusted the average list prices of our drugs and vaccines for 2025 below the overall rate of inflation – approximately 2.4% – for many products in our diverse product portfolio,” Pfizer spokeswoman Amy Rose said in an email. She said the increases help support investment in drug development and offset costs.
Bristol Myers raised the price of its expensive cancer cell therapies Abecma and Breyanzi by 6% and 9%, respectively. Personalized blood cancer treatments can already cost close to half a million dollars.
A BMS spokesman said in an email that the company is “committed to achieving seamless patient access” to its medicines. She said the price of Breyanzi in particular “reflects a potentially transformative, individualized treatment in a single infusion.”
Sanofi raised the prices of a dozen of its vaccines by between 2.9% and 9%.
The biggest brand price increase according to the 3-axis analysis was from Leadiant Pharmaceuticals, a unit of Italy’s Essetifin. The company raised prices by about 15% on its Hodgkin’s disease treatment Matulane and by about 20% on Cystaran, eye drops to help patients with symptoms of a rare condition called cystinosis.
Spokesmen for Leadiant and Sanofi did not immediately respond to requests for comment.
