Posted by Michael Wonder on 14 Jul 2016
Drugmakers’ pricing power remains strong
14 July 2016 - Price increases continue despite pushback from insurers, U.S. lawmakers.
Pharmaceutical companies’ power to raise prices is firmly intact despite pushback from health insurers, scrutiny by U.S. lawmakers and anxiety about rising prescription drug spending.
More than two-thirds of the 20 largestpharmaceutical companies said price increases boosted sales of some or most of their biggest products in the first quarter, according to a Wall Street Journal review of corporate filings and conference-call transcripts.
Shares of many drugmakers have slumped this year, partly because of investors’ concerns that Congress could implement new price controls, or that public scrutiny would cause companies to voluntarily ease price increases. So far, however, Congress has shown little willingness to address the issue, and many drugmakers have continued to raise prices.
