BIG PHARMA WATCH: UNJUSTIFIED PRICE HIKES ON JUST SEVEN BRAND NAME DRUGS COST U.S. $1.6 BILLION IN 2020

New Analysis Underscores How Big Pharma’s Price Increases Cost The American Health System and Are Disconnected from Any Actual Innovation

A new analysis from the Institute of Clinical and Economical Review (ICER) finds that brand name drug makers’ price hikes on just seven drugs cost the U.S. an additional $1.67 billion in 2020. ICER’s most recent Unsupported Price Increase Report examines prescription drugs which faced substantial price hikes during the year without clinical evidence to justify the increases. Several Big Pharma giants were on the list, including AbbVie, Biogen and Novartis.

Here are some takeaways from ICER’s analysis:

• AbbVie’s rheumatoid arthritis drug Humira – a case study in Big Pharma greed – topped the list, costing taxpayers an unsubstantiated $1.4 billion, after the company increased the drug’s price 9.6 percent in 2020.
• AbbVie also hiked the price of hormone drug Lupron Depot by 5.9 percent, costing the U.S. an additional $30 million.
• Novartis raised the price of its drug Promacta, which treats low platelet levels, by 14.1 percent during the year, costing the U.S. $100 million in additional drug spending.
• And Biogen increased the price of multiple sclerosis drug Tysabri by 4.2 percent, costing the U.S. $44 million.

Altogether, unsubstantiated price increases on just seven drugs amounted to an additional $1.67 billion in U.S. drug spending.

ICER’s analysis comes on the heels of third quarter earnings reports that found Big Pharma giants, including AbbVieand Novartis, beat Wall Street expectations after engaging in price hikes during the pandemic.

In addition, Biogen’s unproven Alzheimer’s treatment, Aduhelm, was recently cited by Medicare officials as being largely responsible for a significant increase in seniors’ Medicare Part B premiums for 2022, due to the drug’s staggering $56,000 price tag.

Read ICER’s Unsupported Price Increase report HERE.

Read more on Big Pharma’s third-quarter earnings reports HERE.

Read more on how Biogen’s egregious pricing of Aduhelm is driving higher premiums for seniors HERE.

Learn more about market-based solutions to hold Big Pharma accountable and lower drug prices HERE.