Drugmakers Raise U.S. Prices On Over 250 Medicines To Start New Year

Drugmakers are set to increase U.S. prices on at least 250 branded medications, including Pfizer’s COVID-19 treatment Paxlovid, Bristol Myers Squibb’s cancer cell therapies, and vaccines from France’s Sanofi, at the start of 2025, according to data analyzed by healthcare research firm 3 Axis Advisors, Michael Erman reported this for Reuters.

The U.S. continues to pay more for prescription medicines than any other country.

Nearly all of the price hikes are below 10%, with most well under that threshold. The median increase for the drugs being adjusted on Jan. 1 is 4.5%, aligning with the median for all price increases last year.

These changes affect list prices and do not account for rebates to pharmacy benefit managers or other discounts.

While larger price increases were common in the past, drugmakers have reduced them in recent years due to widespread criticism during the mid-2010s.

The U.S. continues to pay more for prescription medicines than any other country, and incoming President Donald Trump has pledged to lower drug costs by targeting middlemen in the healthcare system.

However, he failed to reduce medicine prices significantly during his first term.

“Drugmakers don’t have much leeway to increase prices over time, which means they’re relying more on high launch prices for new drugs, especially in the face of expanded penalties for year-over-year price hikes,” said Antonio Ciaccia, president of 3 Axis Advisors.

A Reuters analysis found that pharmaceutical companies launched new U.S. drugs in 2023 at prices 35% higher than in 2022.

The over 250 drug price increases represent a rise from Dec. 29, 2024, when drugmakers announced plans to raise prices on more than 140 branded medications.

Some price reductions are also taking effect on Jan. 1. Merck & Co., for example, plans to lower the list prices of its heavily discounted diabetes drugs Januvia and Janumet “to align the list price more closely with the net price.”