Pfizer’s not the only drug company raising prices

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Here's why drug prices are so high

Pfizer caved to stress from President Donald Trump to briefly roll again its drug value will increase. However the pharmaceutical firm is not the one one mountain climbing checklist costs in current months.

Till Pfizer’s announcement Tuesday, few drug producers appeared to pay heed to the president’s exhorting them to cut back prices.

Actually, producers elevated the price of 104 medication in June and the primary two days of July alone, solely weeks after the administration unveiled a blueprint geared toward addressing drug costs, in line with a current Wells Fargo Securities report. As an example, Teva Pharmaceutical (TEVA) raised the worth of a number of of its brand-name medicines by greater than 9% on the finish of June, whereas Novo Nordisk (NONOF) not too long ago raised the worth of insulin drug Tresiba by 5%.

Novo Nordisk mentioned Wednesday it could not comply with Pfizer’s lead.

“We do not intend to reverse our checklist value will increase, that are in step with our promise to maintain annual checklist value will increase beneath 10%,” mentioned Ken Inchausti, a spokesman for Novo Nordisk.

Neither Teva nor PhRMA, the trade’s commerce group, responded to requests for remark.

Associated: Pfizer places value hikes on maintain after Trump complains

Pfizer’s concession, nevertheless, is prone to have a “chilling impact” on different drug companies seeking to increase their costs, mentioned David Maris, senior analyst at Wells Fargo. He famous that Pfizer had a public relations nightmare on their arms, particularly after Trump tweeted earlier this week that the pharmaceutical powerhouse — and others — must be “ashamed” of themselves.

“The depth of the drug pricing debate has elevated among the many nation’s constituents, and legislators are listening,” he wrote in a word Wednesday.

Pfizer (PFE) is not making an enormous sacrifice. It agreed to roll again the worth will increase it applied on July 1, however solely till the top of the 12 months on the newest. This would possibly not have a huge effect on the corporate’s backside line, particularly because it raised costs on many medicines earlier this 12 months.

Here is an instance: Pfizer elevated its checklist value on a 90-pill bottle of ldl cholesterol drug Lipitor this month to $983. Now, it can return to $898, however that is nonetheless up from $820 final 12 months.

Associated: Trump lays out his imaginative and prescient for decrease drug costs

Drug producers have already been curbing their value hikes in recent times, in line with Adam Fein, president of Pembroke Consulting, which focuses on the pharmaceutical trade. Additionally, many firms are elevating costs solely every year as a substitute of twice. That is largely as a result of a rising variety of customers need to pay checklist costs due to adjustments to their employer-sponsored medical health insurance.

CNNMoney (New York) First printed July 11, 2018: 5:52 PM ET



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