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As we enter the new year, drug companies are raising prices on over 250 branded medications in the United States. Pfizer, one of the largest pharmaceutical giants, is increasing the cost of over 60 drugs, including its COVID-19 treatment Paxlovid and cancer drugs Adcetris and Ibrance.
The average price increase is around 4.5%, which is similar to last year. However, more drugs are seeing higher price tags in 2023 compared to 2022. Pfizer claims these increases are necessary to cover rising costs and invest in new drug development.
Despite these increases, prescription drug prices in the U.S. remain significantly higher than in other wealthy countries. Drug companies have faced backlash for excessive price hikes in the past, leading them to scale back on annual increases. However, the launch prices of new drugs continue to rise, resulting in limited access for patients due to high premiums and out-of-pocket costs.
Additional price increases from drugmakers are expected to be announced later this month.