Drugmakers such as Pfizer (PFE), Bristol-Myers Squibb (BMY), and Sanofi (SNY) are set to raise U.S. prices on over 250 branded drugs starting January 2025, according to healthcare research firm 3 Axis Advisors. Most price hikes are under 10%, with a median increase of 4.5%, which is consistent with last year’s adjustments. These increases apply to list prices and don’t reflect rebates or discounts.
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Large price hikes have become less common in recent years due to public backlash, but new drug launch prices have risen sharply, with a 35% increase in 2023 compared to 2022, according to a Reuters analysis. It is worth noting that Pfizer is hiking prices on over 60 drugs — including Paxlovid, Nurtec, and Ibrance — by between 3% and 5%, while Bristol-Myers is raising the cost of its cancer cell therapies, Abecma and Breyanzi, by 6% and 9%, respectively. In addition, Sanofi is increasing prices on about a dozen vaccines by 2.9% to 9%.
Interestingly, not all the changes are upward. In fact, Merck (MRK) plans to cut prices on Januvia and Janumet in order to align list prices more closely with net prices. Meanwhile, incoming President Donald Trump has pledged to address the U.S.’ high drug costs by targeting intermediaries in the healthcare system. Historically, January is the most active month for price changes, and more announcements from other drugmakers are expected.
Which Is the Best Pharma Stock to Buy Now?
Turning to Wall Street, out of the aforementioned stocks, analysts think that SNY stock has the most room to run. In fact, SNY’s price target of $65 per share implies more than 34% upside. On the other hand, they expect the least from BMY, as its price target of $60.69 per share implies an upside of only 7.7%.
