In a surprising turn of events, pharmaceutical companies are set to increase the prices of at least 350 prescription medications in the United States, even as significant pressure mounts from the Trump administration to reduce costs. This list includes crucial vaccines for COVID-19, RSV, shingles, and the widely used cancer drug Ibrance, according to exclusive insights from 3 Axis Advisors, a healthcare research organization.
Compared to last year, where over 250 drugs were slated for price hikes, this year's number indicates a rising trend. The average increase for 2026 is projected to be around 4%, maintaining a similar trajectory to that of 2025. It's important to note that these price increases do not take into account any rebates or discounts that may be offered to pharmacy benefit managers.
Interestingly, drugmakers are also planning to lower the list prices on about nine medications. Notably, Boehringer Ingelheim's diabetes treatment Jardiance will see a drastic reduction of more than 40%. However, representatives from Boehringer and Eli Lilly, who co-market Jardiance, did not provide immediate comments regarding the reasons behind these cuts.
Jardiance is part of a select group of ten drugs for which the U.S. government has successfully negotiated lower prices for the Medicare program catering to seniors starting in 2026. Under these negotiations, the price for Jardiance was reduced by an impressive two-thirds.
Patients in the U.S. currently bear the highest costs for prescription medications, often paying nearly three times more than their counterparts in other affluent nations. In response to this disparity, Trump has been advocating for drug companies to align their pricing with what consumers pay in similarly prosperous countries.
Despite the ongoing negotiations, the planned increases for 350 medications come at a time when Trump has struck agreements with 14 pharmaceutical firms concerning pricing for certain drugs within the government’s Medicaid program, which serves low-income Americans. Companies like Pfizer, Sanofi, Boehringer Ingelheim, Novartis, and GSK are among those involved, many of which are also poised to raise prices on select medications starting January 1st.
Dr. Benjamin Rome, a health policy researcher at Brigham and Women’s Hospital in Boston, voiced concern, stating, "These deals are being touted as transformative, yet they only slightly address the root causes of escalating prescription drug prices in the U.S." He elaborated that it appears companies are raising prices while simultaneously negotiating undisclosed discounts with insurers and setting different prices for cash-paying consumers.
A spokesman from the Department of Health and Human Services (HHS) chose not to comment on the matter.
Pfizer leads the charge with the highest number of price hikes, affecting approximately 80 different medications, including Ibrance, the migraine medication Nurtec, Paxlovid for COVID treatment, as well as several drugs administered in hospital settings like morphine and hydromorphone. Most of Pfizer's price increases fall below 10%, except for a 15% rise on the COVID vaccine Comirnaty, while some of its more affordable hospital medications have experienced increases exceeding four times their previous prices.
In a statement, Pfizer explained that the adjustments to the average list price of its innovative medicines and vaccines for 2026 remain below the overall inflation rate. The company justified these modest increases as necessary to support ongoing investments aimed at discovering and delivering new treatments, as well as addressing rising operational costs.
Historically, larger price surges in the U.S. have become less frequent due to mounting criticism from lawmakers and new policies that penalize companies whose Medicare prices escalate faster than inflation rates.
European pharmaceutical giant GSK has announced plans to increase prices on around 20 drugs and vaccines, with hikes ranging from 2% to 8.9%. The company affirms its commitment to reasonable pricing, asserting that these increases are essential for fostering scientific innovation.
As for Sanofi and Novartis, they have yet to respond to inquiries regarding their pricing strategies.
Looking ahead, more price adjustments—both increases and decreases—are anticipated in early January, a time historically marked by significant price hikes in the pharmaceutical industry.
3 Axis Advisors is a consulting firm that collaborates with pharmacist organizations, health plans, and various groups associated with the pharmaceutical sector to tackle issues related to drug pricing and supply chain dynamics. They share staff and resources with 46brooklyn, a nonprofit focused on drug pricing.
