NEWS

Pfizer Plans to Increase U.S. Drug Prices in January

November 16, 2018

By Reuters Staff

NEW YORK (Reuters) - Pfizer Inc said on Friday that it plans to hike U.S. prices on 41 of its medicines in January, after walking back its previous price increases this summer under pressure from President Donald Trump.

The company said in a statement that the increases would be on around 10 percent of its drugs. Pfizer said it would raise the list price of most of the drugs by 5 percent, while prices for three will rise by 3 percent, and the price of one other will rise by 9 percent.

Pfizer said it expects that rebates to insurance companies and pharmacy benefit managers will offset its price increases, and it expects the higher prices will not boost its revenue in the United States next year.

"We believe the best means to address affordability of medicines is to reduce the growing out-of-pocket costs that consumers are facing due to high deductibles and co-insurance, and ensure that patients receive the benefit of rebates at the pharmacy counter," Pfizer's chief executive, Ian Read, said in the statement.

The company rolled back a set of price increases in July after Trump said in a tweet that the drugmaker "should be ashamed" and that his administration would respond.

Pfizer said then that it would defer price increases until the end of the year or until the president's drug pricing plan went into effect -- whichever was sooner.

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