Drug price increases

New drugs are launching with ever-higher prices

Pill breaking open spilling $100 bills.
Illustration: Eniola Odetunde/Axios

The average launch prices for new brand-name drugs have skyrocketed over the past decade, according to an analysis from drug research firm 46brooklyn.

Why it matters: The U.S. prescription drug market increasingly has thrived on high initial price tags and subsequent increases. That has resulted in higher premiums and out-of-pocket costs for new drugs, as well as more expensive generics.

"Unsupported" drug price hikes cost Americans billions

A building with the AbbVie logo and palm trees in the foreground.
AbbVie's Humira manufacturing plant in Puerto Rico. Photo: AbbVie

Price hikes on 7 prominent drugs — all of them above the rate of medical inflation, none supported by clinical evidence — cost Americans more than $5 billion over the last two years, according to a new report from the Institute for Clinical and Economic Review.

Why it matters: Drugmakers weren't hiking prices because their medications were safer or more effective than when they were approved. They did it because they could.