In a striking move that has raised eyebrows across the healthcare landscape, pharmaceutical companies are set to increase the prices of at least 350 branded medications in the U.S. This includes crucial vaccines for COVID-19, RSV, and shingles, as well as the highly regarded cancer treatment Ibrance. Despite ongoing pressure from the Trump administration urging these companies to reduce their prices, the data released exclusively by the healthcare research firm 3 Axis Advisors reveals a significant rise from last year, when over 250 drugs were subject to price hikes. Notably, the median increase for 2026 sits at approximately 4%, mirroring the rate seen in 2025.
It’s important to note that these price increases do not account for any rebates offered to pharmacy benefit managers or other types of discounts that might be available. In an unusual twist, some drugmakers also intend to reduce list prices for about nine medications. For example, Boehringer Ingelheim is slashing the price of its diabetes treatment Jardiance by more than 40%, along with three related drugs. However, both Boehringer Ingelheim and Eli Lilly, the joint sellers of Jardiance, have yet to provide comments regarding the reasons behind this decision.
Jardiance is particularly noteworthy because it is among the top ten medications for which the U.S. government successfully negotiated a reduced price under the Medicare program aimed at individuals aged 65 and older. Under these negotiations, Boehringer and Lilly dramatically lowered the Jardiance price by two-thirds, highlighting the complexities of pharmaceutical pricing strategies.
Currently, patients in the United States face exorbitantly high costs for prescription medications, often paying nearly three times as much as their counterparts in other wealthy nations. This alarming trend has led Trump to intensify his calls for drug manufacturers to align their prices more closely with those in similar affluent countries. Ironically, these proposed increases on 350 drugs accompany announced agreements between Trump and 14 pharmaceutical companies regarding pricing for certain medications within the government’s Medicaid program, which serves low-income Americans and those who pay cash directly. Companies like Pfizer, Sanofi, Boehringer Ingelheim, Novartis, and GSK are also among those slated to raise prices on select medicines starting January 1st.
Dr. Benjamin Rome, a health policy researcher at Brigham and Women’s Hospital in Boston, commented on the situation, suggesting that the announced deals are being painted as revolutionary when, in reality, they only address minor aspects of what drives the high costs of prescription drugs in the U.S. He pointed out that pharmaceutical companies appear to be maximizing their pricing while simultaneously negotiating discounts behind closed doors with health insurers and setting different prices for cash-paying consumers.
When it comes to specific companies, Pfizer stands out by announcing the most increases, affecting around 80 of its drugs. This list includes well-known treatments such as Ibrance, the migraine medication Nurtec, and the COVID-19 treatment Paxlovid, alongside several medications administered in hospitals, like morphine and hydromorphone. Interestingly, while most of Pfizer's price hikes remain under 10%, its COVID vaccine Comirnaty is seeing a notable 15% increase, and some of its lower-cost hospital medications have experienced price surges exceeding four times their previous rates.
In defense of these adjustments, Pfizer stated that they had managed to keep the average list price of their innovative medicines and vaccines for 2026 below the overall inflation rate. The company maintains that these modest increases are necessary to fund ongoing investments that enable them to develop new treatments and manage rising operational costs.
Historically, substantial price increases from drug manufacturers were more frequent. However, growing scrutiny from lawmakers and new governmental policies—such as penalties for companies whose Medicare prices increase faster than inflation—have prompted a shift in this practice. European pharmaceutical giant GSK is planning similar price hikes on around 20 of its drugs and vaccines, with increases ranging from 2% to 8.9%. GSK asserts that these price adjustments are essential for fostering scientific innovation.
Both Sanofi and Novartis have yet to respond to inquiries regarding their pricing strategies. As we approach early January—a period traditionally marked by significant price hikes in the pharmaceutical industry—further adjustments in prices can be anticipated.
3 Axis Advisors, the firm providing this data, collaborates with pharmacist associations, health plans, and various organizations linked to the pharmaceutical industry to address drug pricing and supply chain challenges. It is worth mentioning that 3 Axis shares personnel with the non-profit organization 46brooklyn, which focuses on drug pricing issues.
