For the first time since California began requiring drug makers to report and explain their price hikes, the state released data showing the three-year median increase in wholesale prices for more than 1,000 medicines was nearly 26%, suggesting a compounded annual increase of roughly 8% from 2017 through the first quarter of this year. The annual inflation rate was 2% during the same period.

The report marks a milestone, of sorts, in efforts to force the pharmaceutical industry to provide more insight into its pricing decisions. By passing so-called transparency laws, a growing number of states hope to pull back the curtain on the link between expenses and prices that drug companies have often used to justify rising or high prices.

Unlock this article by subscribing to STAT Plus and enjoy your first 30 days free!

GET STARTED

What is it?

STAT Plus is STAT's premium subscription service for in-depth biotech, pharma, policy, and life science coverage and analysis. Our award-winning team covers news on Wall Street, policy developments in Washington, early science breakthroughs and clinical trial results, and health care disruption in Silicon Valley and beyond.

What's included?

  • Daily reporting and analysis
  • The most comprehensive industry coverage from a powerhouse team of reporters
  • Subscriber-only newsletters
  • Daily newsletters to brief you on the most important industry news of the day
  • Online intelligence briefings
  • Frequent opportunities to engage with veteran beat reporters and industry experts
  • Exclusive industry events
  • Premium access to subscriber-only networking events around the country
  • The best reporters in the industry
  • The most trusted and well-connected newsroom in the health care industry
  • And much more
  • Exclusive interviews with industry leaders, profiles, and premium tools, like our CRISPR Trackr.

Leave a Comment

Please enter your name.
Please enter a comment.

  • This is a completely meaningless report about list prices. California is leading the way … in irrelevant disclosures.

    Actual generic transaction prices are going through a multi-year cycle of deflation. List prices are bogus.

    For brand-name drugs, these data echo the list price data published by IQVIA and by some manufacturers. However, net prices for brand-name drugs (after rebates and discounts) are growing very slowly or declining. See https://www.drugchannels.net/2019/09/half-off-sale-five-major-drugmakers.html

    What’s more, these list price data are already available from multiple data providers. But at least the state legislators can pat themselves on the back for “doing something.” What a waste of time.

  • One might observe that we are surprised at the potential reason, but that would be …. insincere at best. Failure to file brings a fine but …
    ” One source explained that some companies failed to explain price hikes even when reasons were already known. …there are no penalties for failing to provide explanations.”

A roundup of STAT’s top stories of the day in science and medicine

Privacy Policy