Last week, Pfizer increased its drug prices in the U.S. by an average of 8.8 percent, according to Morgan Stanley analyst David Risinger, CFA.
This latest increase marks the second time this year the company substantially raised prices for its prescription drugs. On Jan. 1, Pfizer increased drug prices by an average of 10.4 percent.
Mr. Risinger highlights Pfizer's pattern of boosting prices by notable amounts on a regular basis, saying the new price spikes are "consistent with historical action despite political media noise regarding U.S. drug pricing."
He also notes that these increases do not reflect any rebates or discounts. After taking those price breaks into account, Mr. Risinger estimated that the actual net price growth is just under half of the increases in the list prices.
Although it is unclear how much of rebates and discounts are passed along by pharmacy benefit managers and health plans to clients, many people with health insurance are likely to see higher costs to absorb a portion of rising prices.
According to a Pfizer spokesman, some of the drug maker's most widely used medicines including Lyrica, Xalkori, Ibrance and Prevnar won't see an increase.
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