Roche, Bayer and Merck KGaA have also decided to freeze drug prices in the US following the intervention of the Trump administration. The three European pharmaceutical companies have therefore made it known that this year they will not raise prices in what represents for them the largest market in the world, in the wake of what has already been announced by Novartis, Pfizer and MSD.
Some analysts doubt that this decision will have a significant impact, given that these commitments will temporarily take the various companies away from Trump's attacks, but will leave them ample leeway for adjustments in the coming months.
The "big chill" of prices
Novartis CEO Vas Narasimhan halted price hike in June. A month later, Trump called Pzifer's number one CEO Ian Read after his company hiked prices on July 1. And Pfizer has reversed course, winning the applause of the White House. New Jersey-based MSD also announced price cuts on some drugs, including those for hepatitis C. However, the overall impact could be small given the tiny market shares of these drugs . MSD also announced it will not raise the average net price of other medicines above the annual inflation rate.
High cost treatments
Keytruda, MSD's $13,500-a-month immunotherapy was not on the list of drugs whose price would be cut. According to Thomson Reuters estimates based on analyst forecasts, the therapy is on track to reach $18 billion in sales in 2024.
“With numbers like that, many pharmaceutical companies can take a temporary breather on price hikes,” said Michael Nawrath, an analyst at Zuercher Kantonalbank. “Why risk what happened to Pzifer and get caught in the eye of the storm? – asks the expert – This is clearly a facade adhesion and, if it is not, why not commit to making it last longer, especially since we are already talking about one of the most profitable industries?”
Source Reuters
