Drugmakers Set to Hike Prices on Over 250 Medicines in the US

Drugmakers are set to raise prices on at least 250 branded medications in the United States starting January 1, 2025, according to data analyzed by healthcare research firm 3 Axis Advisors. The median price increase of the drugs being hiked is 4.5%, which is in line with the median for all price increases last year. Nearly all of the drug price increases are below 10%, with most well below. The largest brand price increases were from Leadiant Pharmaceuticals, a unit of Italy's Essetifin, which raised prices 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.

The increases are to list prices, which do not include rebates to pharmacy benefit managers and other discounts. Larger drug price increases were once far more common in the US but in recent years drugmakers have scaled them back after price hikes drew sharp criticism in the middle of the last decade. "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.

Pfizer raised prices of the most drugs on the latest list - more than 60 drugs. As well as a 3% hike on Paxlovid, the company raised prices on medicines including migraine treatment Nurtec and cancer drugs Adcetris, Ibrance and Xeljanz between 3% and 5%. "Pfizer has adjusted the average list prices of our medicines and vaccines for 2025 below the overall rate of inflation – approximately 2.4% – across many products in our diverse product portfolio," Pfizer spokesperson Amy Rose said in an email. She said the increases help support investments 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. The personalized blood cancer treatments can already cost close to half a million dollars. A BMS spokesperson said in an email that the company is "committed to achieving unfettered patient access" to its medicines. She said the price of Breyanzi in particular "is reflective of the potentially transformative, individualized treatment in a one-time infusion."

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 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. Spokespeople from Leadiant and Sanofi did not immediately respond to requests for comment.