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The start of a new year often symbolizes fresh beginnings, but for pharmaceutical companies, it marks the time to roll out changes in drug pricing. As 2025 kicks off, many major drugmakers are increasing the costs of their products in the United States, impacting both patients and healthcare providers.
According to research conducted by 3 Axis Advisors, a healthcare data firm, more than 250 branded drugs will see price increases this year. This list includes medications from leading pharmaceutical companies like Bristol Myers Squibb, Merck, Sanofi-Pasteur, and Pfizer. Among them, Pfizer stands out as the company raising prices on the largest number of drugs—over 60.
Pfizer’s Adjustments at a Glance
Pfizer, which boasts a portfolio of nearly 500 products, has implemented price hikes ranging from 3% to 5% for various treatments. These include its COVID-19 antiviral Paxlovid, cancer therapies like Adcetris and Ibrance, and the arthritis drug Xeljanz. The median increase across the industry, which excludes rebates and discounts, hovers at 4.5%—a figure consistent with last year. However, the sheer number of drugs affected has risen significantly for 2025.
In a statement to Fortune, Pfizer addressed these changes, saying: “Pfizer has adjusted the average list prices of our medicines and vaccines for 2025 below the overall rate of inflation—approximately 2.4%—across many products in our diverse product portfolio. The modest increase is necessary to support investments that allow us to continue to discover and deliver new medicines as well as address increased costs throughout our business.”
A Trend That’s Hard to Ignore
For years, the United States has maintained prescription drug prices that far surpass those in other wealthy nations. While public scrutiny has led to a reduction in annual price hikes, experts note a troubling shift: the cost of newly launched drugs has been steadily climbing. A 2022 study published in JAMA revealed that between 2008 and 2021, the prices of new drugs at launch rose sharply, often leading to restricted access for patients or unaffordable out-of-pocket costs.
In February 2024, an analysis by Reuters found that U.S. drug launch prices were 35% higher in 2023 compared to the previous year. This pricing strategy reflects a broader industry trend where companies prioritize higher launch prices over gradual price hikes, particularly as penalties for year-over-year increases become more stringent.
“Drugmakers don’t have much real estate any longer to increase prices over time, which means taking greater liberties on launch prices is really the only option they have in the face of expanded penalties for year-over-year price increases,” explained Antonio Ciaccia, president of 3 Axis Advisors.
A Glimpse Ahead
This January may be just the beginning of a wave of adjustments. Industry insiders expect more price increases to be announced throughout the month, potentially affecting additional medications and treatments.
For consumers, the implications are clear: as prices rise, access to affordable healthcare continues to be a pressing issue. While drugmakers justify the hikes as necessary for innovation and rising business costs, the burden often falls on patients, who face higher premiums, stricter coverage limitations, and out-of-pocket expenses that can be devastating.
The debate over drug pricing is far from over, but for now, Americans entering 2025 will need to navigate an ever-evolving pharmaceutical landscape—one that seems increasingly tilted toward rising costs.
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