Drugmakers in the U.S. are poised to increase prices on over 350 branded medications, including vaccines for COVID-19, RSV, shingles, and popular cancer treatment Ibrance. This price hike occurs despite ongoing pressure from the Trump administration for reductions in medication costs, reports BritPanorama.
This year’s price increases represent a significant rise compared to last year, when manufacturers disclosed plans for price hikes on more than 250 drugs. The median increase for 2026 is approximately 4%, maintaining pace with the previous year. It is important to note that these increases do not account for any potential rebates or discounts negotiated with pharmacy benefit managers.
Drugmakers also cut some prices
In contrast, some companies are also set to lower list prices for about nine drugs, with significant reductions such as a 40% cut for Boehringer Ingelheim’s diabetes medication Jardiance and three corresponding treatments. However, Boehringer Ingelheim and Eli Lilly, who co-market Jardiance, have not provided comments regarding the rationale behind these price reductions.
Jardiance is one of the ten drugs for which the U.S. government has negotiated lower prices within the Medicare program for individuals aged 65 and over in 2026, resulting in a two-thirds reduction in price.
Currently, U.S. patients bear the highest prescription medication costs globally, often paying nearly triple what patients in other developed countries pay. The Trump administration has called for alignments with pricing standards seen in similarly affluent nations.
The planned increases on 350 medications arrive as the Trump administration has orchestrated deals with 14 drug manufacturers to set prices for certain medications under the Medicaid program aimed at aiding low-income Americans. Among these companies are Pfizer, Sanofi, Boehringer Ingelheim, Novartis, and GSK, who are also expected to enact price hikes for some drugs starting January 1.
“These deals are being announced as transformative when, in fact, they really just nibble around the margins in terms of what is really driving high prices for prescription drugs in the U.S.,” said Dr. Benjamin Rome, a health policy researcher at Brigham and Women’s Hospital in Boston. He remarked that companies appear to be inflating prices while simultaneously negotiating private discounts with health insurance providers and establishing separate cash prices for direct consumer sales.
An HHS spokesman declined to comment on these price strategies.
Keeping up with inflation
Pfizer is among the leaders in announcing price hikes, expecting increases for around 80 drugs, including the cancer treatment Ibrance, migraine relief drug Nurtec, and COVID treatment Paxlovid. Most of these increases will remain below 10%, with the exception of a 15% increase for the COVID vaccine Comirnaty and over four-fold increases for certain affordable hospital drugs.
In defense of their pricing strategy, Pfizer stated that the average list price for its innovative medicines and vaccines will stay below the overall inflation rate for 2026.
In past years, substantial price hikes were more common among U.S. drug manufacturers. However, recent criticisms from lawmakers and new government policies, penalizing companies whose Medicare drug prices outpace inflation, have led to more restrained increases.
European drugmaker GSK has announced price increase plans for approximately 20 drugs and vaccines, with hikes between 2% to 8.9%, claiming these adjustments are essential to fund scientific innovation. Meanwhile, Sanofi and Novartis have not provided comments relating to their pricing strategies.
As the new year approaches, further price increases and adjustments can be anticipated in January, historically recognized as the peak month for drug price elevations. 3 Axis, a consulting firm engaged with pharmacist groups and health plans regarding drug pricing, highlights that it shares staff with the nonprofit organization 46brooklyn.
