Drugmakers to Increase Prices on at Least 350 Medicines in U.S.

Drugmakers including Pfizer, GlaxoSmithKline PLC, and AstraZeneca plan to raise prices on more than 350 unique drugs in the U.S. in early January, according to a health care research firm's 3 Axis Advisors analysis published in Reuters.

The raises are expected as the pharmaceutical industry prepares for the Biden Administration's Inflation Reduction Act (IRA). The act, signed in August, will allow the federal health insurance Medicare program to negotiate directly with drugmakers starting in 2022.

Medicare will first negotiate the prices of medications covered under Medicare Part D that lack a generic or comparable alternative.

According to the analysis, drug manufacturing costs increased due to inflation and supply chain constraints.

The prices are expected to increase for asthma, autoimmune diseases, cancer treatments, as well as on shingles vaccines.

A 2021 analysis from RAND Corporation, a nonprofit research institution, found that prescription drug prices in the U.S. are 2.56 times more expensive than in 32 other countries.

However, the price of unbranded generic drugs is slightly lower in the U.S. than in most other countries.

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