Pharmaceutical Giants Boost Prices on Over 700 Drugs, Including Popular Ozempic
The pharmaceutical companies have initiated price hikes on more than 700 medications at the beginning of this year, according to recent industry research. Among the drugs facing price increases are the widely used weight-loss medications Ozempic and Mounjaro, both belonging to the class of GLP-1 agonists primarily designed for diabetics but sought after by non-diabetics for their weight-loss effectiveness.
The analysis conducted by 46 Brooklyn indicates an average price increase of approximately 4.5%, a slightly slower pace compared to the previous five years, during which drug prices rose by an average of 5% annually. Notably, Ozempic and Mounjaro experienced price hikes of 3.5% and 4.5%, respectively, contributing to the ongoing challenges of drug shortages attributed to heightened demand.
Novo Nordisk, the manufacturer of Ozempic, increased the drug’s price by 3.5%, bringing the cost for a month’s supply to $984.29. Eli Lilly’s Mounjaro saw a 4.5% price hike, reaching about $1,000 for a month’s worth. Both pharmaceutical companies have cited changes in the healthcare system, market conditions, and the impact of inflation as reasons for these adjustments.
Other widely used medications witnessing price increases this year include:
- Enbrel, an autoimmune disease medication, rising by 5%
- Oxycontin, a pain medication, experiencing a 9% increase
- Plavix, a blood thinner, seeing a 4.7% rise
- Wellbutrin, an antidepressant, encountering a significant 9.9% surge
The timing of these increases aligns with a historical trend where most brand prescription drug list price hikes occur in either January or July each year. Since 2018, more than 60% of all brand drug list price increases have taken place in January, as highlighted by 46 Brooklyn.
However, it’s crucial to note that the wholesale acquisition cost analyzed by 46 Brooklyn might not directly reflect what patients ultimately pay for these drugs. Patient expenses can be influenced by insurance coverage, rebates, and other discounts.
While many drug prices have risen, the analysis also identified around two dozen medications that experienced notable price drops at the start of the year. This includes certain insulin products, with the cost of Novo Nordisk insulin products under the Novolog brand decreasing by a remarkable 75% compared to the previous year. The Biden administration and health policy experts have been scrutinizing the exorbitant pricing of insulin in the U.S., considering it a human rights violation.
Additional medications witnessing price reductions include:
- Cialis, an erectile dysfunction drug, declined by 19%
- Prozac, an antidepressant, dropping by 18%
- Advair, a chronic obstructive pulmonary disease medication, decreases by 22% to 60%, depending on the formulation
Although the number of drugs experiencing price cuts is smaller compared to those facing hikes, the reductions are deemed “truly remarkable from a historical perspective” by 46 Brooklyn. This is especially noteworthy as it includes historically high-utilization products such as insulins, asthma/COPD inhalers, and central nervous system (CNS) drugs.
As pharmaceutical giants continue to navigate the delicate balance of pricing and accessibility, the impact on patients, insurers, and the broader healthcare system remains a focal point of discussion and concern.