Pfizer will increase the price of drugs a few months after Trump's complaint

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The manufacturer announced on Friday that it would increase by 5% the list price of all but four drugs, as of January 15th. Three drugs will increase by 3%, while another will increase by 9%. Medications account for 10% of Pfizer's drug portfolio.

The drug maker surprised a lot in July with his decision to hike after Trump tweeted that society should be "ashamed" of itself to raise prices and profit from the poor. The next day, the President tweeted that he had personally spoken to the CEO of Pfizer, who had agreed to reduce the increases.
Trump has made drug price reduction a top priority for his first term. In May, its administration developed a 44-page "master plan" to increase competition, reduce regulations and change incentives for all players in the pharmaceutical sector. Last month, Trump presented a plan to reorganize the Medicare payment method for some high-cost drugs by basing refunds on prices paid in other countries.
But Pfizer has always said that the postponement would be temporary – would only last until the end of the year or until the Trump Master Plan has come into effect, whichever comes first.

Pfizer noted on Friday Increases will be offset by higher rebates and discounts to insurance companies and drug benefit managers who manage drug programs for employers, federal and state governments and other clients. He stated that he expects these players to share these benefits with patients so that their costs do not increase.

"We believe that the best way to reduce the cost of drugs is to reduce the rising costs consumers face as a result of high deductibles and co-insurance, and to ensure that patients benefit from discounts at the counter. pharmacy, "Ian Read, CEO of Pfizer, said in a statement.

The White House has not responded to a request for comment.

The Ministry of Health and Social Services said its secretary, Alex Azar, and Trump "will continue to take bold steps to restructure this crumbling market."

"The actions announced today on catalog prices further illustrate the perverse incentives of the US drug pricing system," said Caitlin Oakley, spokesman for the agency. "Pharmaceutical companies that raise their prices and offset them with cheaper discounts benefit everyone, except the consumer, who consistently pays out of pocket for the price they charge."

Trump signs bills to increase price transparency for medicines

Pfizer's price increases are "not flagrant" and could serve as a test balloon to gauge the administration's response, said David Maris, senior analyst at Wells Fargo Securities.

"However, given the popularity of the previous criticism, we believe that [will] "Ignite the debate over the price of drugs," said Maris, "all the more so as it happens less than two weeks after an election that resulted in Democratic control of the House, a lot of they have already used Medicare-for-All drug price monitoring platforms ".

While a few other companies, such as Novartis and Merck, have also agreed this summer to freeze prices for some drugs, many manufacturers have continued to increase them. Drug manufacturers increased the cost of 104 drugs in June and the first two days of July, just weeks after the administration unveiled the master plan, according to a report by Wells Fargo Securities. Manufacturers generally increase their prices early and in the middle of the year.

Congress should continue to focus on reducing the price of drugs next year. This is one of the few common areas of agreement between the parties. Trump and Democratic leader Nancy Pelosi, who is seeking to return to her position as Speaker, spoke about it the day after mid-term elections last week.

CNN's Maegan Vazquez contributed to this report.

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