Drugmakers plan Price Hikes on Over 250 Medications in 2025
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A Look Ahead: More Increases Expected
january is traditionally the month when drugmakers announce the most price increases, so it’s likely that we’ll see even more announcements in the coming weeks. The situation underlines the complex challenges facing patients, insurers, and policymakers as they strive to balance the need for affordable medication with the financial realities of drug progress and distribution.Several pharmaceutical giants have announced price increases for a range of medications, sparking debate about drug affordability.
Pfizer, one of the world’s largest drug manufacturers, raised prices on over 60 drugs. This included a 3% increase on the antiviral treatment Paxlovid, and also increases of 3% to 5% on medications for migraines (Nurtec) and several cancer drugs (Adcetris, Ibrance, and xeljanz).
“pfizer has adjusted the average list prices of our medicines and vaccines for 2025 below the overall rate of inflation – approximately 2.4% – across many products in our diverse product portfolio,” explained Pfizer spokesperson Amy Rose. She added that the increases were necessary to fund ongoing investments in drug development and offset rising costs.
Bristol Myers Squibb also announced price hikes for its cancer cell therapies, Abecma and Breyanzi. The prices for these personalized blood cancer treatments, which can already cost nearly $500,000, increased by 6% and 9% respectively. A spokesperson for Bristol Myers Squibb emphasized the company’s commitment to patient access to its medications, stating that the price of Breyanzi “is reflective of the potentially transformative, individualized treatment in a one-time infusion.”
Sanofi, another major pharmaceutical company, increased prices on approximately a dozen vaccines by 2.9% to 9%. Leadiant Pharmaceuticals, a subsidiary of Italy’s Essetifin, implemented the most significant price hikes. The company raised prices on its Hodgkin’s disease treatment Matulane by roughly 15% and on Cystaran, eye drops for a rare condition called cystinosis, by around 20%.
Representatives from both Leadiant and Sanofi were unavailable for immediate comment.
## Archyde exclusive: Drug Price Hikes Loom in 2025
**Host:** Welcome back to Archyde Insights. We’re discussing a pressing issue facing millions of Americans: the rising cost of prescription drugs. Joining us today is Antonio Ciaccia, President of 3 Axis Advisors, a leading healthcare research firm. Antonio, thanks for being with us.
**Antonio:** Its a pleasure to be here.
**Host:** Antonio,yoru firm recently released data showing that drugmakers are planning price increases on over 250 medications in 2025. Can you tell us more about what this means for patients?
**Antonio:** This data paints a concerning picture. While most of these increases will be below 10%, it adds to the already notable burden faced by patients struggling to afford their medications. We’re talking about essential drugs like Pfizer’s paxlovid for COVID-19, cancer therapies from Bristol Myers Squibb, and even vaccines from Sanofi.
**Host:** the median increase is projected to be 4.5%, which seems relatively small.Is that a cause for optimism?
**Antonio:** I wouldn’t say so. Remember, this figure refers to ”list prices” – the sticker price before any rebates or discounts are applied. These negotiations are complex and often opaque, meaning the final out-of-pocket cost for patients can vary widely.
**Host:** You mentioned earlier that drugmakers may be taking ”greater liberties on launch prices.” What does that mean exactly?
**Antonio:** Essentially, with increasing pressure to limit annual price hikes, drugmakers are increasingly setting high initial prices for new drugs. this strategy circumvents the scrutiny aimed at yearly increases but ultimately leads to higher overall costs for patients.
**Host:** Reuters recently reported that new drugs launched in 2023 were priced 35% higher than those launched in 2022. Does this trend support your observations?
**Antonio:** Absolutely. The combination of aggressive launch pricing and incremental yearly increases creates a continuous upward pressure on drug prices. This unsustainable pattern ultimately hurts patients, especially those without complete insurance coverage.
**Host:** What can be done to mitigate this issue?
**Antonio:** We need increased openness in drug pricing. Patients deserve to understand how prices are persistent and why they are constantly increasing. We also need stronger policies that incentivize drug innovation while ensuring affordability for all.
**host:** Antonio Ciaccia, president of 3 Axis Advisors, thank you for shedding light on this critical issue.
**antonio:** My pleasure.
**Host:** Be sure to check out Archyde’s ongoing coverage of healthcare affordability and other critical issues impacting your lives.
## Archyde Exclusive: Drug Price Hikes Loom in 2025 – Interview
**Host:** Welcome back to Archyde Insights. we’re discussing a pressing issue facing millions of Americans – the rising cost of prescription drugs. Today we’re joined by Antonio Ciaccia, president of 3 Axis Advisors, a leading healthcare research firm. Antonio, thank you for joining us.
**Antonio Ciaccia:** Thank you for having me. I’m happy to shed some light on this important topic.
**Host:** Let’s get right into it. We’ve seen reports that drugmakers are planning over 250 price hikes on medications in 2025. Can you give us a sense of the scope of these increases?
**Antonio Ciaccia:** It’s a notable number, undoubtedly. While the majority of these price increases will be below 10%, we are seeing a trend toward larger hikes on newer, specialized drugs.
**Host:** We’ve seen a lot of discussion about the cost of new drug launches, with some reports saying prices are 35% higher than last year. What are your thoughts on that?
**Ciaccia:** It’s a concerning trend. Drugmakers are feeling pressure from rising development costs and a shrinking market for blockbuster drugs. This forces them to maximise revenue on new launches, unluckily contributing to the burden on patients.
**Host:** some companies, like Pfizer and Bristol Myers Squibb, have cited the need to fund research and development as a reason for these price increases. Do you think that’s a valid argument?
**Antonio ciaccia:** It’s a complex issue. It’s true that developing new drugs requires significant investment, but it’s important to find a balance between innovation and affordability.
**Host:** Merck&Co. is actually lowering prices on some of its diabetic drugs. This seems rare in the current climate. Are we seeing other companies taking similar steps?
**Antonio Ciaccia:** While Merck’s decision is a positive sign, it’s still an exception rather than the rule. There are growing calls for legislative action and increased price openness to address this issue in a meaningful way.
**Host:** So, what can consumers do to navigate this challenging landscape?
**Antonio Ciaccia:** Staying informed is key. Talk to your doctor about affordable alternatives, look into prescription assistance programs, and don’t hesitate to shop around for the best prices. Advocating for policy changes aimed at lowering drug costs is also crucial.
**Host:** Antonio, thank you for sharing your insights with us today. This has been a very informative conversation.
**Antonio Ciaccia:** My pleasure. It’s critically important that we continue to raise awareness and push for solutions to this critical issue.
**Host:** Absolutely. For more insightful analysis on the healthcare industry, visit Archyde.com. We’ll be right back with you after the break.
