NEW YORK (Reuters) – Drug manufacturers, including Abbvie Inc and Bristol Myers Squibb, have raised U.S. list prices on more than 500 drugs to be completed by 2021, according to an analysis by research firm 46brooklyn.
The increases come as drugmakers weaken due to the effects of the COVID-19 pandemic, which has reduced visits to doctors and the demand for some drugs. They are also fighting new rules for drug pricing from the Trump administration, which will reduce the profitability of the industry.
This includes more than 300 price increases from companies such as Pfizer and GlaxoSmithKline, which were reported by Reuters late last week.
Almost all of the increases were below 10%, and the median increase was 4.8%, slightly lower than last year, 46brooklyn said here. The company’s analysis is based on data from Elsevier’s Gold Standard Drug Database.
Abbvie has raised prices on about 40 drugs, including a 7.4% increase on the treatment of rheumatoid arthritis Humira, the world’s top seller. Revenue from Humira is expected to reach $ 20 billion next year.
Bristol Myers has raised prices on about a dozen drugs, including cancer drugs Revlimid and Opdivo by 4.5 and 1.5 percent, respectively. This increased the price of the blood thinner Eliquis by 6 percent.
It says in a statement that it only increases drug prices with ongoing clinical research. It expects net prices, which include discounts and other discounts, to fall this year.
The price increases on drugs have decreased significantly since 2015, in terms of the size of the increases and the number of drugs affected.
46brooklyn said, however, that the analysis of Medicaid data shows that the average cost per brand is still increasing.
“Over time, we are driving out cheaper brands designed to treat large populations, and replacing them with expensive brands designed to treat smaller populations,” wrote Eric Pachman, president of 46brooklyn. “With price increases losing their impact, launch prices will be the primary driver of price inflation in US medicine.”
Reporting by Michael Erman; Edited by David Gregorio