Here are five things to know:
- This modest price increase is a dip from last year’s 4.5% rise, reflecting a cautious approach as drug companies may try to avoid criticism from President Donald Trump while seeking his support for key industry priorities, the report said.
- The price hikes affect well-known drugs produced by companies such as Pfizer, Novartis and Bristol-Myers Squibb, according to an analysis for the Journal by 46brooklyn, a nonprofit research group.
- The analysis found that while most price increases remained under 10%, certain medications saw significant hikes. For example, Amgen raised the price of its psoriasis treatment, Otezla, by 7%, pushing its monthly cost to about $5,325.
- Although drugmakers argued the price hikes are necessary to fund the development of new drugs and cover rebates to pharmacy benefit managers, the higher list prices often lead to higher out-of-pocket costs for insured patients, such as larger deductibles or copays, according to the report.
- Among the larger price hikes, Leadiant Biosciences raised the price of its Hodgkin lymphoma treatment, Matulane, by 15% while United Therapeutics increased the price of its pediatric cancer drug, Unituxin, by 9.9%, bringing the cost of a vial to $19,047. Pfizer, the company with the most price increases, raised prices on more than 60 medications, including cancer drugs and the COVID-19 antiviral pill Paxlovid.
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