Medical Research Charities > News > Pfizer just raised drug prices by an average of nearly 9 percent, STAT News

Pfizer just raised drug prices by an average of nearly 9 percent, STAT News

File this under “What controversy?”

Last week, Pfizer increased the list prices of its medicines in the United States by an average of 8.8 percent, according to an investor note by Morgan Stanley analyst David Risinger.This marks the second time this year that the drug maker has substantially boosted prices for its prescription drugs. Back on Jan. 1, Pfizer raised prices by an average of 10.4 percent, Risinger pointed out.

However, he noted that these increases do not reflect any rebates or discounts. After taking those price breaks into account, in fact, Risinger estimated that the actual “net price growth” was slightly less than half of the increases in the list prices.

What is unclear, however, is how much of those rebates and discounts are then passed along by pharmacy benefit managers and health plans to their clients, which would include companies and unions, for instance. In any event, many people with health insurance are likely to see higher costs as they are asked to absorb a portion of rising prices.

The data for price hikes on Pfizer individual drugs were not included in the Morgan Stanley note, and the brokerage firm declined to provide that information. A Pfizer spokesman wrote us that, last year, the company paid about $4.6 billion in rebate to Medicare, Medicaid and commercial insurers. “Some of our most widely used medicines including Lyrica, Xalkori, Ibrance and Prevnar will not have an increase,” he added.

Click here to read the full article by Ed Silverman, STAT News