Reuters has found that some pharmaceutical manufacturers are keeping their drug pricing confidential, a practice facing increased scrutiny in recent years. It made no difference that Congress cut the $500 billion-plus annual bill for prescription drugs in the United States.
Reuters’ investigation revealed that the median annual price of 13 novel drugs approved for chronic conditions by the U.S. Food and Drug Administration this year is $257,000. This finding aligns with a broader trend, as seven other newly-launched drugs were priced above $200,000. However, three drugs introduced in 2022 for intermittent use were not included in this calculation.
A study published in JAMA last year lends context to these findings. It reported that the median annual price for 30 drugs first marketed up to mid-July 2021 had reached $180,000. Hence, this marks a consistent upward trajectory in drug pricing over recent years.
JAMA Calculations
While the Reuters analysis does not replicate the JAMA study’s methodology, it similarly indicates that new drug prices continue to rise. The JAMA study also excluded intermittently used drugs and made adjustments for drugs treating rare diseases, which tend to be more expensive – a factor not considered in the Reuters calculation.
The pharmaceutical industry argues that the prices of new medicine, many of which now treat rare diseases with no existing treatments, reflect their value to patients. This value includes potentially preventing expensive emergency room visits and hospital stays.
Drugmakers also point out that they do not determine the actual cost paid by U.S. patients for these medications. Instead, individual health insurers and plans set out-of-pocket costs. In response to a question about the $12,700 annual price of its new medicine Mounjaro, Eli Lilly & Co (NYSE: LLY) noted that the company offers savings cards to reduce patient costs to as low as $25 a month.
