500 Drugs from Over 140 Brands Are Expected to Cost More This Year

January 03, 2024 - Last week, just before the end of 2023, Reuters published an article breaking a story from data analyzed by 3 Axis Advisors, a healthcare research firm. The analysis evaluated anticipated drug price hikes in the coming month, revealing that approximately 500 drugs of varying doses and formulations from over 140 brands are expected to increase their list prices in January 2023.

For example, Pfizer is projected to have the most significant number of January drug price increases, accounting for 25% of the anticipated increases. Overall, Pfizer intends to increase the cost of 124 drugs and 22 additional drugs through Hospira.

Last year, PharmaNewsIntelligence interviewed Antonio Ciaccia, CEO of 46brooklyn, an Ohio-based nonprofit focused on domestic drug pricing data, regarding price increases in 2023. Ciaccia, who is also president of 3 Axis Advisors, emphasized the importance of analyzing drug price changes in January, as it indicates what is expected in the remaining year.

“Based on prior trends, we should expect that number to go up, but not by much, which shows how significant January is relative to other months regarding price increase activity,” he told PharmaNewsIntelligence, referencing 2023 drug list price changes.

According to the news report from Reuters, many brands, including Pfizer, Sanofi, and Takeda — which are major drug manufacturers that play critical roles in the United States pharmaceutical supply chain — plan to increase prices in the coming year despite continuing efforts by the Biden administration to manage drug costs.

Among those efforts is the Inflation Reduction Act (IRA), a policy that focuses on reducing beneficiary cost-sharing and premiums and reducing prescription drug costs. KFF reveals that the IRA has multiple provisions, including the following:

• Penalizing drug companies that have average sales prices (ASP) for Part B drugs or the average manufacturer price (AMP) for Part D drugs increase faster than the rate of inflation by requiring inflation rebates
• Placing caps on insulin copays and out-of-pocket costs
• Delaying implementation of the Trump administration’s drug rebate rule
• Expanding benefits
• Requiring the federal government to negotiate the maximum fair price for Medicare Part B and Part D drugs

Under the IRA, the Centers for Medicare and Medicaid Services (CMS) and the Department of Health and Human Services (HHS) will negotiate prices on the following drugs: Eliquis, Jardiance, Xarelto, Januvia, Farxiga, Entresto, Enbrel, Imbruvica, Stelara, and Fiasp with its various delivery mechanisms.

Despite negotiations on reducing the prices of these drugs slated to conclude throughout this year, other drug prices will continue to increase up to 10%. As the year continues, healthcare providers will monitor changes in drug prices and evaluate how they will impact patients and the healthcare ecosystem.