The U.S. pharmaceutical market is one of the most important national markets in the world. It represents the largest continental pharmaceutical market worldwide together with Canada and Mexico. The United States alone holds more than 40% of the global pharmaceutical market.
The US drug makers including, Gilead Sciences Inc (GILD.O), Pfizer Inc(PFE.N), Biogen Inc (BIIB.O), Bristol-Myers Squibb Co (BMY.N) and Sanofi SA (SASY.PA) were planning to increase prices on more than 200 drugs in the United States on Jan 1, 2020
The drug prices in the US are higher than in other countries where governments directly or indirectly control the costs. This makes it the world’s most lucrative market for manufacturers. As a result under pressure from politicians and patients, many branded drugmakers have pledged to keep their U.S. list price increases below 10% a year, nearly all of the price increases are below 10% and the median price increase is around 5%.
However, the drugmaker raised the price on 10 drugs which bring in billions of dollars in revenue annually on Wednesday,1 Jan 2020, including a 6% increase on its blood thinner Eliquis and a 1.5% price hikes on cancer immunotherapies Opdivo and Yervoy.
These pharmaceutical price hikes come just days after the US government proposed a rule that would allow less expensive medicines to be imported from Canada. The US Food and Drug Administration continuously promoting the competition which can help to reduce drug prices and improve access to medicines for Americans.
Even though President Trump promised to lower prescription drug prices by the 2020 election. However, none of his proposals have yet to be signed into law. still, there is no federal law that provides a price cap on prescription medication.
The prescription drug prices are expected to again be a central issue in the presidential election. President Donald Trump, who made bringing them down a core pledge of his 2016 election campaign, is running for re-election in 2020.