Launch prices for new drugs ‘significantly’ exceed inflation, analysis says

Amid intensifying angst over prescription drug prices, a new analysis found that the median net price for 154 newly launched medicines, when adjusted for inflation and manufacturer discounts, rose by 51% between 2022 and 2024.

The increase occurred even though the median list price for the drugs — also adjusted for inflation — rose by 24% during that time. Normally, list prices are higher than net prices, since discounts are subtracted. The exact reasons for the divergence were not analyzed but indicate varying discounts given for different types of drugs, according to the Institute for Clinical and Economic Review, a nonprofit that assesses the value of medicines, which ran the analysis.

Meanwhile, ICER also took another look at 23 of those 154 drugs that it had previously reviewed and found 16 had annual net prices that exceeded the upper limits of its Health Benefit Price Benchmark. As a result, the estimated first-year spending was $1.92 billion, compared with $431 million to $661 million if going by the benchmark. This meant an additional $1.26 billion to $1.49 billion was spent in the first year of sales.