Price hikes likely added $8.7B to pharma's net income for 2016, report finds

U.S. net prices for prescription drugs — the amount drugmakers receive after rebates from pharmacy benefit managers — increased 6 percent in 2016, according to a Credit Suisse report cited by Business Insider.

Researchers estimate increases in U.S. net prices contributed $8.7 billion to drug companies' net income in 2016, representing 100 percent of sector earnings per share growth.

Here are five report findings.

1. List prices across the drug industry rose 9.8 percent last year.

2. Net price growth represented 100 percent of net income growth for Biogen, Eli Lilly, AbbVie, Allergan, Merck, Pfizer and Amgen.

3. BioMarin, Gilead Sciences, Novo Nordisk and Regeneron relied on net drug price increases the least, according to the report.

4. The amount of rebates across the drug industry also increased from 35.7 percent in 2015 to 37.5 percent in 2016.

5. Companies with more common drugs paid higher rebates than those with more unique drugs, according to the report.

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