Pharma companies to increase price of at least 350 medicines in the US from next year: Report
Illustration photo shows various medicine pills in their original packaging
If reports are to be believed, pharmaceutical giants such as Pfizer, AstraZeneca PLC, GlaxoSmithKline, Sanofi and Bristol Myers Squibb may be gearing up to increase the price of over 350 medicines in the US in early January.
The rise in price has been anticipated following the passing of the Inflation Reduction Act (IRA) by the Biden administration. Under the act, the government will negotiate prices directly for some medicines.
Medicines are extremely expensive in the USA, compared to other countries because the pharma companies are allowed to set prices without any interference from the government or any related agency.
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However, IRA attempts to change the status quo and thus pharma companies are attempting to get ahead of the curve, according to healthcare research firm 3 Axis Advisors which made the prediction.
The pharma companies are expected to swing hard at the beginning; meaning the launch prices of the medicines will be kept high so as to offset inflation and avoid unnecessary press by the annual price increases.
"Drug makers have to take a harder look at calibrating those launch prices out of the gate...so they don't box themselves into the point where in the future, they can't price increase their way back into profitability," Antonio Ciaccia, president of 3 Axis was quoted as saying by Reuters.
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The price increase comes on the back of pharma giants raising the price of over 1,400 medicines in 2022. Pfizer has increased the price of 89 medicines while GSK has increased the price of 26 unique medicines.
According to reports, the median medicine price increase hovered around 4.9 per cent while the average increase stood at 6.4 per cent. This is the highest increase in the price of medicines since 2015.
While most pharmaceutical companies keep the price hike under 10 per cent, the frequent hikes throughout the year manage to take the price beyond the reach of the users.
Read more: China looking at Indian market for approved Covid-19 drugs as demand increases
(With inputs from agencies)
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