Pharmaceutical companies are set to raise prices on at least 350 branded medications in the United States, including vital vaccines for COVID-19, RSV, and shingles, as well as the cancer treatment Ibrance. This decision comes despite ongoing pressure from former President Donald Trump to lower drug costs. Data from healthcare research firm 3 Axis Advisors reveals that this year’s price increases represent a significant rise from last year, which saw plans to increase prices on more than 250 drugs.
The median price hike for 2026 is projected at around 4%, consistent with the previous year. Notably, these increases do not account for any rebates to pharmacy benefit managers or other discounts that may apply. In contrast, drug manufacturers also plan to reduce the list prices of approximately nine drugs. This includes a substantial cut of over 40% for Jardiance, a diabetes medication co-marketed by Boehringer Ingelheim and Eli Lilly. The companies have yet to respond to inquiries regarding the reasons behind these price reductions.
Under new government negotiations, Jardiance has been selected as one of the ten medications for which the U.S. government negotiated a lower price for the Medicare program, impacting individuals aged 65 and older. As a result, Boehringer and Lilly have agreed to slash the price by two-thirds. Currently, patients in the U.S. face some of the highest prescription drug prices globally, often paying nearly three times more than consumers in other developed countries. Trump has been vocal about his desire for drugmakers to align their prices with those in similarly affluent nations.
Despite these price hikes, Trump has negotiated agreements with 14 pharmaceutical companies to reduce prices for certain medications within the government’s Medicaid program and for cash-paying patients. Companies such as Pfizer, Sanofi, Boehringer Ingelheim, Novartis, and GSK are among those planning to implement price increases on various drugs in the near future.
Dr. Benjamin Rome, a health policy researcher at Brigham and Women’s Hospital in Boston, expressed skepticism about the effectiveness of recent agreements. He stated, “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.” He added that companies seem to be maximizing prices while negotiating discounts with insurers, creating a complex pricing structure for consumers.
Pfizer has announced the most significant increases, affecting around 80 different drugs, including Ibrance, the migraine medication Nurtec, and the COVID treatment Paxlovid. Most of Pfizer’s price hikes are below 10%, with a notable exception being a 15% increase for the COVID vaccine Comirnaty. Some lesser-known hospital drugs have seen price hikes of over four-fold. In response to criticism, Pfizer stated that its average list price increases for 2026 are below the overall rate of inflation, emphasizing the necessity of these adjustments to continue funding research and development.
Historically, larger price increases in the U.S. were more common, but pharmaceutical companies have moderated their approach due to scrutiny from lawmakers and new government policies that penalize firms whose Medicare prices rise faster than inflation. European drugmaker GSK plans to increase prices on approximately 20 drugs and vaccines by 2% to 8.9%. The company has asserted its commitment to reasonable pricing, stating that the increases are essential to support ongoing scientific innovation.
Other major pharmaceutical companies, including Sanofi and Novartis, did not respond to requests for comment. Further price adjustments are expected in early January, which is typically the largest month for pharmaceutical price increases.
3 Axis Advisors, the consulting firm responsible for the data reported, collaborates with pharmacist groups, health plans, and some pharmaceutical industry-related entities on issues related to drug pricing and supply chain management. It is affiliated with the drug pricing non-profit 46brooklyn.
