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Reuters reports that a number of big-name drugmakers, including Pfizer, Sanofi and Takeda plan to raise drug prices to start the year.
According to the report, the price hikes apply to more than 500 drugs. Excluding different doses and formulations, the reach extends to more than 140 brands of drugs. Reuters said healthcare research firm 3 Axis Advisors analyzed data that uncovered these increases.
This move comes just weeks after the Biden Administration signaled its intent to target the pricing of dozens of prescription drugs. The Administration announced a strategy under the Inflation Reduction Act to focus on 48 Medicare Part B drugs that have raised prices faster than inflation.
Biden’s initiative requires pharma firms to pay rebates to Medicare, which could translate to savings of $1 to $2,786 per dose for beneficiaries. The administration estimates more than 750,000 seniors to use the medications the act covers. On top of these efforts, the Biden Administration has also required an insulin price cap.
Under the Inflation Reduction Act, Medicare can negotiate prices directly for some drugs beginning in 2026.
Reuters notes that three companies, including GlaxoSmithKline, expect to lower prices on at least 15 drugs this month. GSK previously stated its intent to cut prices on some asthma, herpes and anti-epileptic drugs, according to the report.
Conversely, the report says Sanofi — which agreed to cut prices on some insulin products — plans to raise prices on typhoid fever, rabies and yellow fever vaccines by 9% in January. Most drug price hikes are expected to come this month.
For reference, drugmakers raised price on 1,425 drugs in 2023, Reuters said, citing data published by 46brooklyn.d