Public Citizen Survey: Only Four Drugmakers Commit to Single-Digit Price Increases
A survey of the world’s largest pharmaceutical companies found that only four were prepared to commit to single-digit percentage increases of the prices of their products annually.
An industry survey conducted by Public Citizen, as well as reviews of public statements made by companies and their CEOs, found that only Allergan, AbbVie, Novo Nordisk and Valeant pledged to follow the policy.
Of the 13 companies that responded, several said that their price increases would stay under 10 percent for a period of a year — including Otsuka, GlaxoSmithKline, Teva, Johnson & Johnson and Takeda — but stopped short of committing to a forward looking pledge, Public Citizen said. Nine companies did not support the idea, citing concerns over the U.S. healthcare system, waste and other drivers of costs.
Following a September 2016 statement by Allergan’s CEO, Brent Saunders, outlining commitments to single-digit increases, Novo Nordisk and AbbVie announced similar policies near the start of this year.