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Drug Price List Increases Lower This Year

May 20th, 2016
drug pricingAfter a bruising year in which pharmaceutical companies came under attack for their drug pricing policies, indications are that this year price increases will be more modest.

Deutsche Bank analysts found the average industry increase was 5% through April. Last year, it was 7.8%.

Valeant is responsible for a good part of the lower increase. After hiking its list price by an industry-leading 25.8% in the first four months of 2015, Valeant boosted prices by a mere 1.2% this year. The analysts' credited the company's “significant change in pricing behavior” for the lower average increase.

Allergan and Teva Pharmaceutical Industries also helped keep the average lower, by upping their price lists this year by a full percentage point each over their average increases last year.

FiercePharma noted that the "analysis was only based on list prices, which don’t factor in rebates or discounts that go into final pricing for a drug."
Tags: pharma

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