Pharmaceutical industry

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.

Health care stocks roar after J&J, UnitedHealth beat earnings

Traders look at screens on the floor of the New York Stock Exchange.
Health care traders are happy. Photo: Drew Angerer/Getty Images

The stock prices of health care companies shot up Tuesday after UnitedHealth Group and Johnson & Johnson, two of the industry's bellwethers, both posted Q3 earnings that exceeded expectations.

Between the lines: Some of the biggest gains accumulated to UnitedHealth and its health insurance peers. UnitedHealth said its insurance division paid out fewer dollars for medical care than projected, raising hope on Wall Street that other insurers were in the same boat.

Go deeper: Health care stocks aren't having a great year