A study published Tuesday in JAMA revealed that launch prices for new drugs rose 20% each year from 2008 to 2021.

Our take: 10 health policy topics—including drug pricing reform—to watch in 2022

Study details and key findings

For the study, researchers at Brigham and Women's Hospital analyzed the annual list prices of 548 brand-name drugs that were launched between 2008 and 2021, using price data from research firm SSR Health. They also analyzed discounted net prices for the drugs, which was based on a smaller subset of 395 drugs.

Infographic: 5 ways to control the flow of drug expenditures

These drugs included treatments for "rare diseases, cancer treatments, and common conditions like diabetes and heart disease," the Boston Herald reports. 

In their analysis, the researchers found that more than 47% of new drugs launched in 2020 and 2021 cost over $150,000 annually. In comparison, only 9% of new drugs cost more than $150,000 each year from 2018 to 2013.

In addition, the median launch price of a new drug in the United States increased from $2,115 in 2008 to $180,007 in 2021—a 20% annual increase each year.

Even after the researchers adjusted for contributing factors, including drugmakers' focus on high-cost diseases like cancer and estimated discounts manufacturers provide for some purchasers, the annual increase in launch prices during the study period was still nearly 11% each year.

Commentary

Drug companies regularly launch new drugs that are designed to boost the efficacy or tolerability of existing treatments. While public attention typically focuses on year-to-year price increases for existing drugs, the study indicated that increasing launch prices for new drugs have also added to rising costs, Bloomberg reports.

As a result, "[t]he trend in prices for new drugs outpaces growth in prices for other health care services," the researchers concluded. Benjamin Rome, one of the researchers for the study, said the increasing drug prices will result in "detrimental effects for patient access and affordability."

The study's findings come amid broader interest in the rising cost of drug prices. On Tuesday, the Federal Trade Commission unanimously approved an investigation into the impact vertical integration in the PBM sector has on access and pricing within the prescription drug market. (Twenter, Becker's Hospital Review, 6/8; Langreth, Bloomberg, 6/7; Rome et al., JAMA, 6/7; Sobey, Boston Herald, 6/7)