Over 250 medicines to cost more from January 1 in the U.S; is your critical drug in the list? Check here

Beginning on January 1, pharmaceutical companies will increase the cost of more than 250 medications in the US. Data analysed by healthcare research firm 3 Axis Advisors shows that at least 250 branded drugs, including vaccines from France's Sanofi, Bristol Myers Squibb's cancer cell therapies, and Pfizer's COVID-19 treatment Paxlovid, will see price increases in the United States at the beginning of 2025.

Almost every drug price increase is less than 10%, and most of them are significantly less. The median price increase for the medications that were raised on January 1st was 4.5%, which is comparable to the median for all price increases that occurred last year. List prices are being raised; rebates to pharmacy benefit managers and other discounts are not included, as quoted in a report by Reuters.

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Which medications face the largest price increases?

Higher drug price increases were once much more common in the United States, but after receiving harsh criticism in the middle of the previous decade, pharmaceutical companies have recently reduced their price increases.

"Drugmakers don't have much real estate any longer to increase prices over time, which means taking greater liberties on launch prices is really the only option they have in the face of expanded penalties for year-over-year price increases," 3 Axis President Antonio Ciaccia stated.

On January 1, pharmaceutical companies will also lower some of their prices. The list price of Merck & Co.'s heavily discounted diabetes medications Januvia and Janumet will be lowered "to align the list price more closely to the net price.

More drug price increases are likely to be announced by other drugmakers over the course of January, historically the biggest month for drugmakers to raise prices. Pfizer raised prices of the most drugs on the latest list, including Paxlovid, Nurtec, Adcetris, Ibrance, and Xeljanz between 3% and 5%. Bristol Myers raised the price of its expensive cancer cell therapies Abecma and Breyanzi by 6% and 9%, respectively. Sanofi raised prices on around a dozen of its vaccines between 2.9% and 9%.

The largest brand price increases according to the 3 Axis analysis were from Leadiant Pharmaceuticals, a unit of Italy's Essetifin. The company raised prices by around 15% on its Hodgkin's disease treatment Matulane and about 20% on Cystaran, eye drops to help patients with symptoms from a rare condition called cystinosis.

FAQs

Why are drug prices rising?
Drug companies are raising prices to fund research, offset costs, and mitigate penalties for year-over-year price increases. Most increases remain below 10%.

What drugs are affected by the price increase?
Pfizer's Paxlovid, Nurtec's migraine treatment, Bristol Myers' cancer therapies, and Sanofi's vaccines are among the top performers, with increases ranging from 3 to 9%.