Written by Michael Ehrman
NEW YORK (Reuters) – Pharmaceutical companies plan to raise U.S. prices on at least 250 brand-name drugs, including… Pfizer (NYSE:) COVID-19 treatment Baxlovid, Bristol-Myers (NYSE:) Squibb cancer cell therapies and vaccines from France Sanofi (NASDAQ:) at the beginning of 2025, according to data analyzed by healthcare research firm 3 Axis Advisors.
Almost all drug price increases were less than 10%, and most were much less. The average price increase for drugs whose prices were raised on January 1 is 4.5%, which is in line with the average of all price increases in the past year.
The increases are intended to include prices, which do not include rebates to pharmacy benefit managers and other discounts.
Large drug price increases were once more common in the United States, but in recent years drug companies have scaled back after price hikes drew sharp criticism in the middle of the last decade.
“Drug makers no longer have a lot of real estate to increase prices over time, which means that having greater freedoms over 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 Sciascia said.
A Reuters analysis of new drug prices found that pharmaceutical companies launched new US drugs in 2023 at prices 35% higher than in 2022.
The increase of more than 250 drugs represents an increase compared to December 29 last year when pharmaceutical companies revealed plans to raise prices on more than 140 brands of medicines.
Pharmaceutical companies are also reducing some prices on January 1. Merck & Co (NYSE:) plans to lower the list prices of heavily discounted diabetes drugs such as Januvia and Janumet “to align list prices more closely with the net price.”
The United States pays more
The United States pays more for prescription drugs than any other country, and incoming President Donald Trump has pledged to reduce drug costs by focusing on middlemen in the US health care system.
Other drug companies are likely to announce more drug price increases over the course of January — historically the largest month for drug companies to raise prices.
Pfizer raised the prices of most of the drugs on the latest list – more than 60 drugs. In addition to the 3% increase in Baxlovid stock, the company raised the prices of drugs including migraine treatment Nortec and cancer drugs Adecetris, Ibrance and Xeljanz, between 3% and 5%.
“Pfizer has adjusted our 2025 average list prices for drugs and vaccines to below the overall rate of inflation — approximately 2.4% — across many products in our diverse product portfolio,” Amy Rose, a Pfizer spokeswoman, 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 treatments Abicma and Brianze by 6% and 9%, respectively. Personalized leukemia treatments can cost nearly half a million dollars.
A BMS spokesperson said in an email that the company is “committed to achieving unfettered patient access” to its medicines. Breyanzi's price in particular “reflects the potentially transformative individual therapy in a one-time infusion,” she said.
Sanofi raised the prices of about ten of its vaccines by a rate ranging 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 about 15% on the Hodgkin's disease treatment Matulani and about 20% on Cystaran, which are eye drops to help patients with symptoms of a rare condition called cystinosis.
Spokespeople from Leadiant and Sanofi did not immediately respond to requests for comment.
