SHOT/CHASER: Analysts Suggest Drug Makers Are Changing Their Ways; Drug Makers Increase Prices By Up To 15 Times Rate Of Inflation

For Immediate Release
Contact: Lauren Blair
(201) 213-5004
[email protected]

SHOT:

Analysts Suggest Drug Makers Are Changing Their Ways:

Analyst Says Industry Appears To Be “Self-Policing.” “Umer Raffat, an analyst at Everscore ISI, said the increases this year appear to be modest, similar to the past couple of years, as the industry adjusts to pressures on drug pricing. … ‘In general, the industry has started to self-police itself.’” (Jared S. Hopkins, “Drugmakers Raise Prices On Hundreds Of Medicines,” The Wall Street Journal, 1/1/19)

Analyst Sees Trend of “Great Restraint.” “RBC Capital Markets analyst Brian Abrahams said biopharmas appear to be ‘self-policing’ in terms of hikes for drug prices… ‘We do see an overarching trend of great restraint.’” (Allison Gatlin, “Biopharmas Restrained In Drug Pricing For 2019 – With These Expectations,” Investor’s Business Daily, 1/2/19)

CHASER:

Drug Makers Increase Prices By Up To 15 Times Rate Of Inflation:

Hikma Pharmaceuticals Led Generics Manufacturers In Increases With Prices To Morphine, Anesthetic Ketamine And Blood-Pressure Medication Enalaprilat Seeing Hikes Of 10, 20 And 30 Percent.  “Among generic drugmakers with the largest increases, Hikma Pharmaceuticals HKMPY 7.48% PLC raised the price of pain drug morphine by 10%, anesthetic ketamine by 20% and blood-pressure medication Enalaprilat By 30%.” (Jared S. Hopkins, “Drugmakers Raise Prices On Hundreds Of Medicines,” The Wall Street Journal, 1/1/19)

Allergan Has Increased The Price Of Two Dozen Drugs By Nearly 10 Percent.  “Pharmaceutical companies are ringing in the new year by raising the price of hundreds of drugs, with Allergan AGN +0.56% PLC setting the pace with increases of nearly 10% on more than two dozen products, according to a new analysis.” (Jared S. Hopkins, “Drugmakers Raise Prices On Hundreds Of Medicines,” The Wall Street Journal, 1/1/19)

Purdue Pharma Increased The Price Of Their Opioid Drug Oxycontin By 9.5 Percent. “Drugmakers are starting 2019 with a slew of price hikes, affecting more than 1,000 medications…  Among the best-known drugs getting costlier are the opioid OxyContin…  Purdue Pharmaceuticals, the manufacturer of OxyContin, didn’t immediately return requests for comment.” (Aimee Picchi, “Big Pharma Ushers In New Year By Raising Prices Of More Than 1,000 Drugs,” CBS News, 1/2/19)

AbbVie Increased Its $20 Billion Blockbuster Drug Humira By 6.2 Percent Just A Couple Of Months After Settling Lawsuits To Keep Generics Off The Market Until 2023. “AbbVie increased by 6.2 percent the list price of its blockbuster rheumatoid arthritis treatment Humira, which is on pace to record about $20 billion in sales in 2018.” (Michael Erman, “Drug Companies Greet 2019 With U.S. Price Hikes,” Reuters, 1/2/19)

Many Increases Far Exceed Inflation. “‘A 9 percent increase isn’t just over inflation – it’s four times inflation,’ [Michael Rea, founder and CEO of RX Savings Solutions] noted.  ‘No matter what, that effect is felt by consumers, by payers and the solvency of public and private health plans.’  Inflation around the U.S. remains around 2 percent.” (Aimee Picchi, “Big Pharma Ushers In New Year By Raising Prices Of More Than 1,000 Drugs,”CBS News, 1/2/19)