Sorry
Pharmaceutical companies started 2023 strong, raising prices for about 450 drugs this month, with more price hikes expected, according to 46brooklyn Research, a nonprofit related to healthcare research firm 3 Axis Advisors.
Antonio Ciaccia, Chief The 46brooklyn chief executive said the 450 increases in wholesale acquisition cost (WAC) or list prices so far this month represents only about a quarter of the total number of increases expected this year. WAC is the manufacturer’s price for wholesalers or direct purchasers and is not the same as the out-of-pocket prices paid by consumers.
“It’s definitely too early to make any broad statements about how 2023 compares to previous years, as there’s a lot more activity that we expect to see before the end of the month,” Ciaccia said. management magazine Form monitoring.
However, the rate of price increases has moderated this year compared to last year amid the implementation of the Inflation Reduction Act, which went into effect on January 1 and requires drugmakers to pay reimbursements on certain Medicare Part B drugs if their price increases outpace inflation.
The landmark law also allows for the first time for the Secretary of Health and Human Services (HHS) to negotiate the prices of Part B and Part D drugs covered by Medicare, with revised prices for the first ten drugs that will go into valid in 2026.
Based on 46brooklyn data, the overall weighted average of WAC price increases based on Medicaid utilization is only 1.3% for all drugs in 2023, compared to 5.1% increase in 2022 In 2022, drug manufacturers increased prices for more than 1,400 drugs, from 2015, with an average increase of 4.9%, roughly in line with the 2023 average of 5.0%, which is below the 10% sector bar.
Pfizer takes the lead: according to a Reuters analysis of data from 46brooklyn, Pfizer (New York Stock Exchange: PFE) has announced the most price increases this year, raising prices on more than 80 single-brand drugs and ten other brands at its Hospira subsidiary.
That included a 6.0% increase for the JAK inhibitor Xeljanz (tofacitinib) and a 7.9% increase for the oral cancer drugs Ibrance (palbociclib) and Xalkori (crizotinib).
A Pfizer (PFE) spokesperson said that this year the company’s average list prices for all medicines and vaccines were subject to a ~3.6% adjustment that was below inflation. “The modest increase is necessary to support investments that allow us to continue to discover and deliver new medicines, as well as address increased costs across our business,” the spokesperson added.
GSK (New York Stock Exchange: GSK) came in second, raising prices for 26 unique drugs, including a 6.9% increase for its Shingrix shingles vaccine.
The analysis of 46brooklyn indicates Omnipaque (iohexol), an x-ray contrast medium, experienced the largest percentage list price increase this year as its manufacturer GE HealthCare (NASDAQ:GEHC), introduced a 26.8% increase, which Ciaccia said could be due to supply constraints.
“While it’s difficult to pinpoint the exact reasons for these types of changes, we know that Omnipaque has had a number of supply challenges over the past year,” he said, adding, “in the face of increased demand amid an extended period of scarcity, I’m not surprised prices are going up in an effort to fill the void.
Diabetes drug prices increased: Other notable price increases include a 4.9% increase for Novo Nordisk (NVO) Ozempic (semaglutide) diabetes injection (OTCPK:NONOF) and a 5.0% increase for Mounjaro (tirzepatide) and Trulicity (dulaglutide), its rival markets Eli Lilly (LLY). Treatments, some of which can also target obesity, are currently in short supply for various forms of drugs due to increasing demand.
Meanwhile, Sanofi (SNY) (OTCPK:SNYNF) has decided to increase the price of its Lantus insulin injection by 3%. This week, California sued three drug manufacturers, including Sanofi (SNY), and three pharmacy benefit managers, accusing them of overcharging for insulin.
In particular, Amneal Pharmaceuticals (New York Stock Exchange:AMRX) posted the largest percentage drop, cutting the price of its multiple sclerosis therapy Lyvispah (baclofen) by 70.2% this month.
Also notable is the 9.0% hike that Bristol Myers Squibb (BMY) implemented for its expensive CAR T-cell therapies Abecma (idecabtagene vicleucel) and Breyanzi (lisocabtagene maraleucel).
The price increase, the first since its market launch in early 2021, leads them to “list prices comparable to other CAR-T therapies available on the market,” a company spokesperson said. However, Bristol Myers (BMY) expects its portfolio to reflect mostly flat US net prices, including discounts and rebates, in 2023.
Ciaccia said that while the 5.9% price increase for Gilead’s HIV therapy, Biktarvy, was not the biggest, it could have the biggest impact on healthcare spending this year if rebates, discounts and other concessions offered by Gilead (GILD) are not kept up to date. the price increase
He noted that Biktarvy, a widely prescribed drug, accounted for more than $500 million in gross Medicaid spending in 2022 and more than $1.7 billion in gross Medicare spending in 2020.
Meanwhile, AbbVie (ABBV) has raised the price of its hit rheumatoid arthritis therapy Humira by ~8.0%, even as health insurers prepare for the end of their US market exclusivity this year, treating their Copied versions at the same level as the markup version.
