Drug Corporations Plan Price Increases on Life-Saving Medications Despite Billions in Increased Profits

January 30, 2023

Drug Corporations Plan Price Increases on Life-Saving Medications Despite Billions in Increased Profits

Major pharmaceutical corporations are set to increase prices on over 350 unique medications this month, continuing a trend of drug industry profiteering, according to Accountable.US and Reuters. A previous Accountable.US report showed that many of these companies and the trade group PhRMA have spent over $205 million in recent years fighting efforts to rein in the cost of prescription drugs.

Pharmaceutical giants Pfizer, Bristol Myers Squibb, AstraZeneca, and Sanofi reported billions in increased 2022 earnings, stock buybacks, and dividends before announcing price hikes in January on essential medications, including expensive cancer treatments.

• Despite seeing a 140% increase in net earnings in 2021 and a 42% increase in the first nine months of 2022, Pfizer plans to increase the prices of nearly 100 drugs, including 7.9% increases on cancer drugs Ibrance And Xalkori. That was despite Pfizer spending $2 billion on stock buybacks and $6.7 billion on shareholder dividends through the third quarter of 2022.
• AstraZeneca is planning to increase prices on at least two cancer treatment medications and one asthma treatment after reporting net earnings of $2.39 billion in the first nine months of 2022, over five times more than the same period of 2021.

“The Inflation Reduction Act has begun to lower drug prices, and that has already made pharmaceutical executives look for ways to keep making outrageous profits on the backs of our sickest citizens,” said Richard Fiesta, Executive Director of the Alliance. “We must continue to address this exploitation of seniors, and all consumers, by building on the strides we have made with the Inflation Reduction Act.”