Pfizer and Other Drug Companies Hiking Prices in 2021

Pfizer and several other drug companies are reportedly planning to hike their prices in 2021. According to Reuters, the price increases will impact over 300 different drugs, and may already be in effect. In addition to Pfizer, both Sanofi SA and GlaxoSmithKline Plc are also planning to hike some drug costs.

Reuters notes that the price increases are likely related to the impact that the coronavirus pandemic has had on the pharmaceutical drug industry, as fewer people are able to regular doctor's office visits. The industry is also facing new drug price-cutting rules that were implemented by the Trump administration. Per 3 Axis — a consulting firm that works alongside pharmacists groups, health plans and foundation regarding drug costs and supply — Pfizer and Sanofi kept almost all of their price hikes to 5 percent or less. In contrast, GlaxoSmithKline Plc raised prices on two vaccines by more. Shingrix, a shingles vaccine, increased by 7 percent. Pediarix, a vaccine for diphtheria, tetanus and pertussis, increased by 8.6 percent.

Pfizer has since issued a statement on the price hikes, explaining that it will allow the company to keep working on other important drug research. "This modest increase is necessary to support investments that allow us to continue to discover new medicines and deliver those breakthroughs to the patients who need them," said Amy Rose, Pfizer's spokeswoman. Rose specifically seemed to point out the coronavirus vaccine that the company developed alongside Germany company BioNTech SE.

So far, the Pfizer COVID-19 vaccine has been distributed to many political figures, as well as some frontline workers. Recently the company has to clarify some accusations regarding productions and distribution issues, explaining that it still had millions of doses of the coronavirus vaccine available in a warehouse but that Trump administration officials had not given them a directive for shipping. In response, Operation Warp Speed's General Gustave Perna took full responsibility for what he called a "miscommunication."

"I failed. I'm adjusting. I am fixing and we will move forward from there," Perna said in a statement last month. "I know that's not done much these days. But I am responsible. … This is a Herculean effort and we are not perfect." He went on to explained that the issue regarding the additional doses was simply due to his error in understanding how many were prepared to be shipped. "There is no problem with the process," he added. "There is no problem with the Pfizer vaccine. There is no problem with the Moderna vaccine."