Banking products Topline
At least three major pharmaceutical companies are ringing in the new year by raising drug prices on a range of products, according to Reuters, in the midst of a pandemic that has taken a serious toll on healthcare systems and limited regular interactions with patients.
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On Friday (Jan. 1), drug companies Pfizer Inc, Sanofi S.A., and GlaxoSmithKline plc plan to raise prices on over 300 products, according to Reuters, citing a report from healthcare researchers at 3 Axis Advisors that it obtained.
Price increases will be 10% or less, with almost all of the increases from Pfizer and Sanofi being 5% or less, Reuters reported.
Pfizer’s biggest increases will be on the arthritis medication Xeljanz, along with the cancer drugs Ibrance and Inlyta, according to Reuters.
According to the report, GlaxoSmithKline plans to raise the price of its diphtheria, tetanus, and pertussis vaccine Pediarix by 8.6% and its shingles vaccine Shingrix by 7%.
The price hike appears similar to increases that were announced at the start of 2020.
Banking products Crucial Quote
“This modest increase is necessary to support investments that allow us to continue to discover new medicines and deliver those breakthroughs to the patients who need them,” Pfizer spokeswoman Amy Rose said in a statement to Reuters, referencing the company’s coronavirus vaccine. Pfizer also said it’s raising the price of products by 1.3% to align with inflation.
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Even more price increases may be announced on Friday, Reuters reported.
Banking products Key Background
Though drug prices are not rising at as rapid of a rate as in the early 2010s, lowering drug prices remains a popular idea among Americans, especially progressives. It’s unclear at this point how much the administration of President-elect Joe Biden will push for lower prices, though, especially since Pfizer managed to produce a vaccine in record time to inoculate against Covid-19. The pandemic has also limited normal patient visits with doctors, and in turn, has decreased demand for some pharmaceuticals. According to Reuters, the price increases could be in part to make up for revenue drops the companies have experienced in 2020.
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