Drug companies continue controversial prices hikes

A recent article in the Wall Street Journal as well as analyst commentary noted that Pfizer Inc., Amgen Inc., Allergan PLC and others have hiked up dozens of U.S. drug prices since December, with many of the increases at nearly 9 percent and 10 percent.

Since New Year's Day, Pfizer alone raised U.S. prices for nearly 60 drugs, some by as much as 20 percent. In response to questions surrounding the company’s considerably high price increases, a spokesperson with Pfizer said that company offers “considerable discounts” off the list prices, and that the company provides free medications to patients meeting income criteria.

Even with a discount, many of the drugs in question are already sitting at astronomical prices. The recent price hike can sometimes add thousands of dollars onto the patient’s final bill. For example, Amgen’s anti-inflammatory drug Enbrel costs nearly $704 a week for the average rheumatoid arthritis treatment plan and has seen three separate 8 percent to 10 percent price increases within the last year.

On Jan 1, Vanda Pharmaceuticals raised the price of Hetlioz, a new drug for treating a sleep disorder in blind people, to $148,000 a year. Piper Jaffray analysts say the price of the medication is now a whopping 76 percent higher than when it was first introduced in 2014.

“The new increases, despite the criticism, signals there’s still pricing power," Jefferies analyst David Steinberg said in an interview. “Unlike other countries, there’s no mechanism whereby regulatory authorities can control price.”