The costs of over 350 different drugs are set to rise in the United States this year as multiple pharmaceutical companies, including Pfizer, prepare for President Joe Biden’s Inflation Reduction Act (IRA) to take effect and inflation continues to soar.
Pfizer, AstraZeneca, GlaxoSmithKline, Bristol Myers Squibb, and Sanofi are among several drugmakers set to raise prices on more than 350 products from January, according to an analysis conducted by health care research firm 3 Axis Advisors.
Along with the IRA, the price hikes are also in response to the soaring cost of living and continued supply chain constraints that have led to higher manufacturing costs.
Under the IRA, the government’s Medicare program will be able to directly negotiate the prices of some drugs that don’t have competition starting in 2026. The increases are on list prices, which do not include rebates to pharmacy benefit managers and other discounts.
The Medicare health insurance program covers individuals who are 65 or older and those with certain disabilities.
Specifically, the provision allows the government to negotiate a “fair price” for 10 drugs covered by Medicare Part D in 2023, with those prices being implemented three years later. The negotiated price list expands to 15 drugs in 2027 and 2028 and 20 in 2029.
Drugs selected for 2026 price negotiation will be announced by Sept. 1, 2023, and manufacturers that don’t follow the negotiation requirements will be subject to tax and penalties.
Drugmakers Raised Cost of Over 1,000 Drugs in 2022
Although drugmakers tend to avoid implementing major price hikes, a drug pricing non-profit that is related to 3 Axis called 46brooklyn Research found that manufacturers raised the prices of 1,400 different drugs in 2022, marking the most increases since 2015.
According to 46brooklyn, the median drug price increase was 4.9 percent last year, while the average increase was 6.4 percent. Both of those increases are, however, lower than the current inflation rates in the United States.
However, Antonio Ciaccia, president of 3 Axis, said that the IRA would implement a dynamic in which drugmakers launch products at higher costs so that further price hikes aren’t required.
An example is Biogen’s highly controversial Alzheimer’s drug Aduhelm, which initially came with a price tag of $56,000 per year. That was later halved following public backlash and scrutiny over the drug’s efficacy.
A report released on Dec. 29 by the House Oversight and Energy and Commerce committees found that the U.S. Food and Drug Administration’s approval process for the drug was “rife with irregularities” and “highly atypical.”
“Drugmakers have to take a harder look at calibrating those launch prices out of the gate … so they don’t box themselves in to the point where in the future, they can’t price increase their way back into profitability,” Ciaccia said.
To date, Pfizer has announced the most increases across 89 unique drug brands, including a 6 percent rise in the cost of Xeljanz, a treatment for autoimmune diseases including rheumatoid arthritis and ulcerative colitis, and 7.9 percent increases for cancer drugs Ibrance and Xalkori.
The New York-headquartered company also implemented an additional increase in 10 drug brands at its Hospira subsidiary.
Inflation Is 1 Reason for Price Hikes
London-headquartered GSK, formerly GlaxoSmithKline, has announced the second highest amount of increases, with planned hikes so far in 26 unique drugs, including nearly a 7 percent increase on its FDA-approved vaccine for the prevention of shingles, Shingrix.
COVID-19 vaccine maker AstraZeneca is also set to raise prices around 3 percent for its blood cancer treatment Calquence, non-small cell lung cancer drug Tagrisso, and asthma treatment Fasenra, while Bristol Myers Squibb is set to hike its CAR-T cell therapies Abecma and Breyanzi by 9 percent. Both of those blood cancer treatments were already more than $400,000 a year.
French multinational pharmaceutical and health care company Sanofi also plans to raise prices on 14 of its drugs or vaccines.
A Pfizer spokesperson attributed the price hikes to much-needed support investments in drug discovery and noted that net prices—those the company actually receives for its drugs—have fallen in the past four years owing to what Pfizer says are higher rebates and discounts paid to insurance companies and pharmacy benefit managers.
AstraZeneca spokesman Brendan McEvoy said the company has “always taken a thoughtful approach to pricing, and we continue to do so, considering many factors.”
A spokesperson for Bristol Myers Squibb credited the price hikes to increased inflation, the value of the therapies, and the “personalized nature” behind the manufacturing of CAR-T cell therapies.
A Sanofi spokesperson said the price hikes in 2023 are “consistent with its approach to responsible pricing, adherence to government policies, and the need to respond to evolving trends in the marketplace.”
Reuters contributed to this report. Article cross-posted from our premium news partners at The Epoch Times.
Why the National Debt Is the Looming Threat to Your Retirement Plans
The Hidden Crisis No One Is Talking About
Every day, headlines warn about inflation, market volatility, and global instability—but the greatest looming threat to your retirement might be something far more fundamental: America’s skyrocketing national debt.
You can learn more about how the national debt affects you by reading this 3-minute report titled, “Debt Will Hit $40T in 2026: Prepare Your Retirement Now“.
With debt growing faster than most Americans can possibly fathom, the government’s borrowing habits have reached historic—and dangerous—levels. To cover spending, Washington is making moves with their budget packages, tariffs, and taxes. Is it enough? No. It’s not even close to what would be necessary to stop out-of-control debt, let alone reverse it.
How Debt Erodes Your Nest Egg
There are only so many levers government and the Federal Reserve can pull to try to protect Americans, assuming that’s even a top priority for them. Unfortunately, pulling one level to relive one pressure invariably adds pressure from another direction. This is why prices keep going up even as inflation reportedly slows.
For retirees and pre-retirees, that’s a perfect storm. The dollars you’ve worked hard to save lose value, and your cost of living increases while your investments lag behind.
If you’re relying solely on paper-based assets—stocks, bonds, or mutual funds—you’re essentially tied to the same system that’s creating the problem. It’s a system that was designed to work well in the 20th century, not in today’s world with people living longer and the dollar rapidly losing value.
This is why the 3-minute report, “Debt Will Hit $40T in 2026: Prepare Your Retirement Now,” is so important.
The Precious Metals Hedge
Thousands of Americans are looking for a tangible, time-tested hedge: physical gold and silver.
Unlike paper assets, precious metals aren’t dependent on government policy or the stock market’s mood swings. They’re real, finite resources that have maintained value for thousands of years through wars, recessions, and inflationary periods.
In fact, during times of high inflation and fiscal instability, gold often performs its best—because it’s seen as a store of value when faith in the dollar weakens. This is why prices have skyrocketed this year and are expected by many economists to continue going up in the future.
Take Control with a Gold IRA
One of the most effective ways to protect your retirement from national debt fallout is through a self-directed Gold IRA. This IRS-approved account lets you hold physical gold and silver within your retirement portfolio, giving you:
- Direct ownership of your assets
- A hedge against inflation and dollar decline
- The control to diversify beyond Wall Street
Augusta Precious Metals specializes in helping Americans just like you take this step with confidence. The company has earned a strong reputation for transparency, education, and personalized service—making it one of the most trusted names in the industry.
The Next Step: Secure Your Financial Future
Augusta Precious Metals has helped thousands of Americans with at least $50,000 to invest from their IRAs, 401(K)s, TSPs, and other retirement accounts safeguard their savings through precious metals.
If you’re concerned about what the rising national debt could mean for your future, now is the time to act.
Read this 3-minute report titled, “Debt Will Hit $40T in 2026: Prepare Your Retirement Now“ and learn the simple steps you can take to protect your retirement.