Merck and Amgen Boldly Test the Limits of Prescription Drug Price Increases

Pharmaceutical companies generally keep drug prices increases around 5% per year. This year, Merck and Amgen tested that unofficial limit. Amgen increased the price of psoriasis treatment Otezla by more than 10% throughout the past year and also increased the prices of biosimilars, a category of therapeutics usually resistant to price hikes. Meanwhile, Merck increased the price of several vaccines by 11%.

“Pharma companies have faced years of pricing scrutiny and at times have responded by reining back their price hikes. Now, it appears the pressure from Washington, D.C., is set to ramp back up, with proposals ranging from Medicare negotiations to importation being floated in Congress.” Read more here.

(Source: Noah Higgins-Dunn, Fierce Pharma, 8/31/21)