posted by Alicia Caramenico
on April 21, 2017
Research and development investments are often cited by Big Pharma as a reason for higher and higher drug prices, but a Credit Suisse report shows why drug companies continue to hike prices: It’s the only way for Big Pharma to grow its business. The report finds drug price increases – not acquisitions or innovation – accounted for 100 percent of industry earnings growth in 2016.
The increases in drug prices also added $8.7 billion to 2016 net income for major pharmaceutical companies, Business Insider reported.
Not to mention the 40 increases on drug prices that took place during the first quarter of 2017, according to a CNBC piece titled “The drug industry is addicted to price increases.” As that piece points out, without price increases, drug company earnings would have declined – clearly another example of Big Pharma putting profits over patients.
The Credit Suisse report demonstrates the pharmaceutical industry’s dependence on price hikes, an “addiction” that puts a severe burden on consumers and employers in the form of higher premiums. Reminder: Prescription drugs are the single largest expense of every health care premium dollar.
High prices put patient access to drugs at risk. The health care system can’t afford to keep rewarding bad behavior.
Want to know more? Watch the video below to learn about the harmful business practices behind rising drug prices.