Amid heated controversy over drug prices, Sanofi (SNY) is the latest large pharmaceutical company to release top-line numbers indicating average prices for its medicines fell last year, after accounting for rebates and discounts.
Specifically, the company posted a brief summary stating the average wholesale — or list— price for its drugs increased 1.6 percent in 2017, but pricing actually declined by 8.5 percent when subtracting rebates and discounts paid to pharmacy benefit managers, or PBMs, and health plans. In 2016, the average price hike was 4 percent, but the net price fell 2.1 percent.
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Per Bloomberg, net revenue for Sanofi last year was 8 Billion Euros, with a profit margin of 23.3% – they did well with such a net price decrease, don’t you think?