Pfizer, Sanofi and GlaxoSmithKline plan to adjust U.S. prices for a total of more than 300 drugs starting Today, according to data compiled by research firm 3 Axis Advisors, Reuters reported.
The price increase is mainly due to the fact that the epidemic in 2020 has reduced the demand of some medicines for the general public in the United States. Drug price policy in the United States is also a consideration. The Trump administration has pushed for drug price reduction policies, which will depress the profits of the pharmaceutical industry. The pharmaceutical companies need to raise the price of drugs before the price is actually cut.
U.S. President Donald Trump has issued a series of executive orders over the past year ordering drug makers to lower prices, but so far the effect has been limited as a court has ruled that a federal executive order has been suspended after it was sued by industry groups, Reuters said. Other issues have also prevented drug prices from falling as quickly as Trump had hoped. Prescription drug prices in the United States are among the highest in the world.
Drug companies are preparing to announce U.S. price increases of 10 percent or less today or later this month. Big drugmakers such as Pfizer and Sanofi have all but capped the increase at 5 percent or less. Last year, drugmakers raised the price of more than 860 drugs in the U.S. market, an average increase of about 5%, according to 3 Axis Advisors. However, compared with previous years, the growth rate of drugs and products has started to slow since 2015.
As the Wall Street Journal looks ahead to the pharmaceutical industry this year, it expects a merger boom. The Wall Street Journal said global mergers and acquisitions in the pharmaceutical industry will total only $253 billion in 2020, down from $432 billion in 2019, due to the outbreak and uncertainty over regulation of the industry in the U.S. election. But the big medicine factory management difficulty lies in must through the unceasing acquisition, seeks the possible successful prescription; But most of the research and development candidates fail to reach the market, and the drugs that struggle to reach the market run the risk of being outmarketed with expired patents and more effective drugs.
The Wall Street Journal notes that drug makers have been less willing to raise prices of older drugs in recent years, lest they become a target of criticism in Washington political circles. But the prices of high-priced drugs have continued to rise, with most of the benefits going to middlemen and less to manufacturers.
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