Beginning in February, New Brunswick, N.J.-based Johnson & Johnson will divulge price increases for its prescription drugs, reports The Washington Post.
The company will release a report detailing the average list and net price increases of its drugs. The report will not include figures for individual drugs, however, since discounts given to middlemen like wholesalers, retailers and pharmacy benefit managers are competitive information, according to the report.
While industry experts believe the move will help the company's image more than it will benefit patients, it could encourage other drugmakers to take steps toward price transparency.
Last fall, Allergan's CEO Brent Saunders introduced a "social contract" with customers, promising to limit price hikes on prescription drugs. Novo Nordisk became the second major drugmaker vowing to limit price increases when CEO Jakob Riis promised not to boost the list price of its drugs by more than a single-digit percentage annually.
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