Drug manufacturers are set to increase prices on over 350 branded medications in the United States, including vaccines for COVID, RSV, shingles, and the popular cancer drug Ibrance. This move comes despite ongoing pressure from the Trump administration to reduce drug prices. The data, provided by healthcare research firm 3 Axis Advisors, reveals that the number of planned price hikes for 2026 has increased compared to last year, with a median increase of around 4 percent.
In addition to the price hikes, drugmakers are also planning to lower prices on approximately nine drugs. Notably, Boehringer Ingelheim’s diabetes drug Jardiance will see a significant price cut of more than 40 percent. This decision follows negotiations with the US government to lower drug prices for the Medicare program for seniors aged 65 and older.
While the US government has been pushing for lower drug prices, patients in the US still pay significantly more for prescription medicines compared to other developed countries. Despite recent negotiations with some drugmakers on pricing for certain government programs, companies like Pfizer, Sanofi, Boehringer Ingelheim, Novartis, and GSK are moving forward with price increases on some medications in the new year.
Dr. Benjamin Rome, a health policy researcher, expressed skepticism about the impact of these price deals, suggesting that they may not address the underlying factors driving high drug prices in the US. Pfizer, for instance, announced increases on a range of drugs, including Ibrance, Nurtec, and Paxlovid, citing the need to support investments in new medicines and address rising business costs.
While price hikes have been a common practice in the past, drugmakers have faced increased scrutiny and regulatory pressure to keep prices in check. GSK, a European drugmaker, also plans to raise prices on several drugs and vaccines, emphasizing the necessity of these hikes to support ongoing scientific innovation efforts.
Looking ahead, more price adjustments are expected in early January, a traditional period for drug price changes. 3 Axis Advisors, the firm providing the pricing data, works closely with various healthcare stakeholders to address drug pricing and supply chain challenges.