Drugmakers are gearing up to increase the prices of over 350 popular medicines in the U.S. This includes vaccines for COVID-19 and shingles, as well as well-known cancer treatments like Ibrance. A report from healthcare research firm 3 Axis Advisors reveals that the average price hike planned for 2026 is around 4%, similar to last year’s rate.
Interestingly, while many drugs will see price increases, some companies are planning significant cuts. For example, Boehringer Ingelheim is slashing the price of its diabetes drug Jardiance by over 40%. This move comes as part of a negotiation to lower prices for Medicare beneficiaries. In fact, Jardiance will see its price reduced by two-thirds under government negotiations for 2026.
American patients are already paying significantly more for medications compared to those in other wealthy nations—often nearly three times more. Former President Trump has been vocal about his desire for drugmakers to align U.S. prices with those in countries that are similar economically.
Despite some companies cutting prices, pharmaceutical giants like Pfizer are still proposing price hikes. Pfizer plans to increase the prices of around 80 different drugs, including treatments for cancer and COVID-19. Most of these increases are modest but do include a notable 15% hike for its COVID vaccine, Comirnaty. Interestingly, some hospital-administered drugs have seen price increases of over four times their original cost.
Experts stress that these increases often overshadow the small cuts being made. Dr. Benjamin Rome, a health policy researcher, suggests that companies seem to be maximizing prices while negotiating secret discounts with insurers. This creates a complex pricing landscape for consumers.
Interestingly, the atmosphere around drug pricing has changed recently, with larger increases becoming less common. Increased scrutiny from lawmakers and new government regulations penalizing companies for price hikes beyond inflation have pressured companies to justify their pricing strategies.
In another perspective, GSK, a European pharmaceutical company, plans to raise prices on 20 drugs and vaccines, citing the need to fund scientific innovation. Sanofi and Novartis are staying silent on their strategies amidst these shifts.
The landscape for drug pricing is evolving. Early January is typically the month when most price hikes take place, so more announcements are expected soon. Data from consulting firm 3 Axis will continue to provide insight into these pricing trends, giving us a clearer picture of how these adjustments impact patients and the healthcare system.
