List prices of prescription medicines rise nearly 7% on average in 2022
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The U.S. drugmakers increased the list prices of prescription medicines by an average of 6.6% during the first few weeks of this year, The Wall Street Journal reported, citing data from Rx Savings Solutions, a vendor of software solutions to reduce drug costs.
About 450 drugmakers raised prices on 866 products through Jan. 20., according to Rx Savings data, and among them were leading pharmaceutical companies such as Pfizer (NYSE:PFE), AbbVie (NYSE:ABBV), Bristol-Myers Squibb (NYSE:BMY), and Novartis (NYSE:NVS).
Notable price hikes include a 7% increase in AbbVieâs (ABBV) main revenue generator Humira, a 6% rise in blood thinner Eliquis co-marketed by Bristol-Myers Squibb (BMY) with Pfizer (PFE), and a 5% increase in diabetic drug, Trulicity marketed by Eli Lilly (NYSE:LLY).
Pfizer (PFE) has raised prices by ~3% on average across 219 medications, including a ~7% increase in the cancer drug Ibrance and Prevnar vaccine. Meanwhile, the price of the anti-inflammatory drug Xeljanz, it markets for rheumatoid arthritis, has gone up by ~6%.
The Swiss pharma giant, Novartis (NVS), has jacked up prices by an average of ~6% on 17 drugs that included the psoriasis medication Cosentyx and heart-failure drug Entresto. The price increases took effect for only 4% of its U.S. product portfolio, according to the company.
 âAfter significant discounts and rebates paid to commercial and government payers, we expect the average net price increase to be significantly less across our portfolio,â The Journal quoted a company spokeswoman as saying.
While pharmaceutical companies often hike prices in the first few weeks of the year, the increases were more modest this time, according to Bernstein analyst Ronny Gal who noted that in 2015 and 2016, prices of some of the leading drugs rose by more than 10%. 
âThose were the years the companies went hog wild on price increases,â Gal said, adding âthat was the peak.â
Aside from political scrutiny, certain pricing strategies in the industry to rein in inflation have also discouraged drugmakers from resorting to aggressive price hikes, according to Gal.
In some cases, drugmakers are required by pharmacy benefit managers to pay rebates when prices exceed a certain threshold. In addition, the Medicaid program â which also requires rebates when price hikes exceed inflation Â­â has become a large component in the market.
However, there were some significant price increases too. AmerisourceBergenâs (NYSE:ABC) Blue Point Laboratories has more than doubled the price of cancer chemotherapy cisplatin to $30. Privately-held Exelan Pharmaceuticals has increased the price of its generic blood pressure drug lisinopril by 536% to $6.17 â $549.85, depending on the dosage and package size.
These price hikes came at a time the U.S. retail inflation reached a four-decade high in December with a ~7% increase in the December consumer price index.
However, some drugmakers did the opposite. In January, Biogen (NASDAQ:BIIB) cut the price of its new Alzheimerâs medication, Aduhelm by nearly 50% amid slow uptake.