Pharmaceutical companies like Pfizer and Sanofi are planning to increase prices of more than 500 drugs in January, Reuters reports.
More than 140 brands of drugs in different doses and formulations will cost more starting this month, according to data analyzed by 3 Axis Advisors, a healthcare research firm.
The expected raises come amid continuous high inflation and increased manufacturing costs. As worries grow over a prolonged Middle East conflict disrupting supply chains, shippers were forced to halt or reroute traffic from the Red Sea, Reuters reports.
Moreover, pharmaceutical companies are preparing for the Biden Administration to publish significant price cuts for 10 high-cost drugs, including diabetes medications and blood thinners.
The Inflation Reduction Act, signed into law by President Biden, allows Medicare to directly negotiate the prices of certain high-expenditure, single-source drugs without generic or biosimilar competition.
However, reduced prices won’t come into effect until 2026, and negotiations are already plagued by lawsuits brought by drug makers.
Some pharmaceutical companies have announced price reductions for 2024. For instance, GlaxoSmithKline, a UK-based drug manufacturer, is expected to cut prices on at least 15 drugs this month.
Eli Lilly, an American pharmaceutical company, has pledged to lower the prices of its Humalog and Humulin insulins by 75.8% and 70%, respectively.
January has historically been the most common month for raising drug prices, with an average increase of 5% since 2019.