Drugmakers Raise Prices on Hundreds of Medicines

https://www.wsj.com/articles/drugmakers-raise-prices-on-hundreds-of-medicines-11546389293

Pharmaceutical companies are ringing in the new year by raising the price of hundreds of drugs, with Allergan PLC setting the pace with increases of nearly 10% on more than two dozen products, according to a new analysis.

Many companies’ increases are relatively modest this year, amid growing public and political pressure on the industry over prices. Yet a few are particularly high, including on some generics, the cheaper alternative to branded accounting for nine out of 10 prescriptions filled in the U.S. Overall, price increases, including recently restored price increases from Pfizer Inc., continue to exceed inflation.

More than three dozen drugmakers raised the prices on hundreds of medicines in the U.S. on Tuesday, according to an analysis from Rx Savings Solutions, which sells software to help employers and health plans choose the least-expensive medicines. The average increase was 6.3%, according to the analysis, including increases on different doses for the same drug.

Drug pricing remains a hot topic that is expected to draw increased attention from Democrats when they take control of the House this week. Pharmaceutical companies are under the spotlight over the cost of their drugs, with pressure coming from patients, insurers and the Trump administration. “The reason it can keep happening is there is no market check, no person or entity to bring reason to determining drug prices,” said Michael Rea, CEO of Rx Savings Solutions. Clients of the Overland Park, Kan., company include Petco and Blue Cross & Blue Shield of Kansas City.