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Drug Prices Jump: 350 Meds See Hikes Amidst Cuts
2 Jan
Summary
- Over 350 medications will see price increases in 2026.
- Price hikes average around 4%, with some drugs seeing higher jumps.
- Some drugmakers are also cutting prices on a small number of medications.
As of January 1, 2026, drugmakers are set to implement price increases on more than 350 branded medications in the United States. This wave of price hikes affects a wide range of drugs, from vital vaccines for COVID, RSV, and shingles to high-profile treatments like the cancer drug Ibrance and Pfizer's Paxlovid. The median increase stands at approximately 4%, a figure consistent with the previous year's adjustments.
Despite these planned increases, the pharmaceutical landscape shows some nuance, with approximately nine drugs slated for price reductions. Notably, Boehringer Ingelheim and Eli Lilly will cut the list price of their diabetes drug Jardiance by over 40%. This move comes as Jardiance is one of the drugs included in the U.S. government's 2026 Medicare price negotiation program, which saw its price slashed by two-thirds for seniors.
These pricing strategies are unfolding against a backdrop of intense scrutiny and pressure from the Trump administration, which has been advocating for lower prescription drug costs in the U.S., where prices are among the highest globally. While some drugmakers have engaged in limited price cut agreements for government programs, the broader trend points towards continued price adjustments, with more expected in early January.
