Amid continued political pressure on the pharmaceutical industry, a new analysis finds that brand-name drug makers increased their wholesale prices by 2.3% in the first quarter of this year, a much smaller boost than 3.2% hike that occurred during the same time a year ago.
Meanwhile, after subtracting allowances such as rebates and discounts, net prices paid by health plans fell by 2.6%, compared with a 3.7% decline in last year’s first quarter, according to SSR Health, which tracks the pharmaceutical industry. Looked at another way, the discounts off wholesale prices reached 50.4%, which is the highest level in a decade. The figures were adjusted for inflation.
Unlock this article by subscribing to STAT Plus and enjoy your first 30 days free!
GET STARTEDWhat 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
- STAT+ Conversations
- Weekly opportunities to engage with our reporters and leading industry experts in live video conversations
- 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.
About the Author Reprints
Big fan of everything STAT and particularly Ed’s stuff but I did spot a concern in here. After referencing an overall decrease in net prices that last two years (-2.6%, -3.7%), you refer two separate times (last sentence of paragraph 6, first of paragraph 7) to “higher” or an “increase” in net prices. Was this by mistake or am I missing a more granular point somewhere?
Hi Adam,
Thanks for the note. And good catch. I was moving a little too fast for my own good and reversed the wording. I’ve now updated. Appreciate you writing.
Regards
ed at pharmalot
Why is it that the rebates provided by drug companies never passed on directly to those patients taking the drugs? I would be ecstatic if my monthly exceedingly hight cost meds I take for my heart conditions and type 2 diabetes are discounted by 50%! Reduction to my monthly premium for my Medicare supplement Part D plans is peanuts compared to my deductibles and copays! The donut hole has not been addressed at all by the politicians all!