Pharmaceutical companies are planning to increase prices on over 250 brand-name medications in the United States at the beginning of 2025, according to an analysis by health care research firm 3 Axis Advisors. That’s a notable drop from last January, during which more than 500 drugs saw price increases.
Affected medications include Pfizer’s Paxlovid COVID-19 treatment, Bristol Myers Squibb’s cancer therapies, and Sanofi’s vaccines.
The median price increase is expected to be 4.5%, consistent with price hikes from the previous year, though these increases apply to list prices before any rebates or discounts. While significant drug price increases were previously common in the U.S., pharmaceutical companies have become more conservative with their pricing strategies following public criticism in recent years (see chart below).
“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 said. Data shows that new drugs launched in 2023 were priced 35% higher than those introduced in 2022.
A reminder that MedBen Rx offers a variety of solutions to fight back against rising drug prices, including:
- ACI pricing that pays for medications based on what the pharmacies pay, so you know where every dollar goes… and why.
- Benefit preservation programs that reduce your specialty drug spend to the greatest extent possible.
- Biosimilars that offer significant (and fee-free) savings over high-cost biologics like Humira and Humalog.
- Comparative effectiveness that uses evidence-based research to match members with the drugs that will work best for them.
- Pharmacogenomics that uses DNA testing to improve drug selection while minimizing trial and error.
Get more information about these and other proven pharmacy solutions by contacting MedBen VP of Sales & Marketing Brian Fargus.