Pfizer, the biggest pharmaceutical company in the US, raised the prices of 133 of its brand-name products in the country. In a UBS research, the increases in prices can go as much as 10 percent this year. And Pfizer is not alone in this quest, Turing went on with the massive hike on one drug and other big pharmas also raised the price on some of their products.
A 5000-percent price hike by Turing Pharmaceutical on its anti-parasitic drug reaped massive attention from the national media. In addition, Pfizer's rival, Merck & Co. raised the price of 38 drugs. Pfizer has more than 600 drugs sold globally while Merck sells more than 200 worldwide, including almost 100 in the United States.
Pharmaceutical companies have been raising prices over the years on their older drugs. This is a strategy that the drugmaking industry uses in order to drive revenue on older medications.
This issue of drug price hike was put into the spotlight when Turing decided to raise the price of one of its drug from $13.50 to $750, 5000% more of the original price. Presidential candidate Clinton countered that she will implement programs to force the industry to reduce prices and increase research spending, among others. Martin Shkreli, Turing's CEO, said that the company would reduce the price, but we have not seen prices go down yet.
On a brighter side, drugmakers admitted that these increases are not felt by most consumers for the fact that intermediaries negotiate what is being paid. This means that the price these companies charge for the drugs are way below the list price.
Although introducing the hike on its drugs, Pfizer explained that it has programs offered to patients who cannot afford such drugs. The company also pointed out that the prices are as low as possible.
After discounts, big pharmas may still have bigger gain on their drugs. What do you think of the price hike? Is it too harsh on the patients?
