Big Pharma Raised Prices of Several Prescription Drugs on First Day of 2020

By Chris MorrisFormer Contributing Writer
Chris MorrisFormer Contributing Writer

    Chris Morris is a former contributing writer at Fortune, covering everything from general business news to the video game and theme park industries.

    The turning of the calendar to January 1st marked a new year, a new decade and new price hikes from some of the pharmaceutical industry’s biggest names.

    Bristol-Myers Squibb, Gilead Sciences, Biogen and other drugmakers increased list prices on 50 drugs once 2020 began, according to healthcare research firm 3 Axis Advisors.

    The price hikes are almost all below 10%, with the median price increase hovering around 5%, though more price increases could come in the following weeks.

    That’s lower than the 2019 average price increase, which came in at 6.3%. And it’s within the 10% annual limit many Big Pharma companies have pledged to honor as politicians zero in on drug pricing as a key talking point in the 2020 election.

    It is, however, more than twice the annual inflation rate for the United States, which stood at 2.1% for the 12 months ended November 2019

    While the increases are not excessive, compared to other pharmacological price jumps in previous years, the drugs affected could still be a point of contention. Bristol-Meyers increased the price of Opdivo and Yervoy, two cancer drugs, as well as Eliquis, a heavily prescribed blood thinner. Gilead will charge more for Biktarvy and Truvada, two HIV treatments.

    Drug prices have been a focus in Washington for 18 months, after President Doanld Trump chided drug makers for raising prices “for no reason.”

    More must-read stories from Fortune:

    25 ideas that will shape the 2020s
    USPS could privatize as early as next year
    UPS’s $20 billion bet on e-commerce is paying off
    Airbnb copes with a bad trip on the road to a 2020 IPO
    2020 Crystal Ball: Predictions for the economy, politics, technology, etc.

    Subscribe to Fortune’s Eye on A.I. newsletter, where artificial intelligence meets industry.