Pfizer to hike prices of 41 prescription drugs next year
Pfizer announced that CEO Ian Read will step-down by the end of the year and be replaced by the company’s current chief operating officer Albert Bourla.
American pharmaceutical giant Pfizer will raise the price of more than 40 of its prescription drugs next year, the company announced on Friday.
Forty-one medicines – or 10 percent of Pfizer’s drug portfolio—will be affected. The increases will mostly be around 5 percent, though three drugs will see a 3 percent rise in cost and one will cost 9 percent more.
“Pfizer’s pricing is guided by the value our products bring to patients and an understanding of the environment in which we operate,” the company said in a statement. “These list price increases are expected to be offset by higher rebates and discounts paid to Insurance Companies and Pharmacy Benefit Managers and the net effect on revenue growth in the U.S. in 2019 is expected to be zero.”
The increases will go into effect on Jan. 15. The cost of the remaining 90 percent of drugs will not rise.
Pfizer rolled back a price hike over the summer, in response to pressure and criticism from President Trump. The company, which is one of the world’s largest pharmaceutical companies sales-wise, initially raised the price on 40 drugs before withdrawing those increases – a move later praised by the president.
Novartis also committed to holding off on price hikes for 2018 amid Trump’s criticisms. Merck reduced the price on some of its medicines and committed to not raising prices in any given year by more than the rate of inflation.
Prescription drugs continue to drive overall health care costs higher, despite the fact that more lower-cost alternatives are available on the market – a trend one insurer thinks could lead to a “surge” in drug prices in the near future.