Inflation-Busting Price Hikes For Ozempic, Mounjaro And Others: Are Drugmakers Profiteering?
Portfolio Pulse from Neil Dennis
Drugmakers have raised prices for popular diabetes treatments Ozempic and Mounjaro, used off-label for weight loss, in 2024. Novo Nordisk's Ozempic increased by 3.5% to nearly $970, and Eli Lilly's Mounjaro by 4.5% to around $1,070. The increases are above the 3.4% consumer price inflation rate of December. The industry justifies price hikes with rising R&D costs, but critics argue for policies ensuring fair pricing. Other drugs, like Eliquis by Bristol-Myers Squibb and Pfizer, also saw a 6% price increase to $594. Price hikes may be moderated due to political pressure and penalties for exceeding inflation rates.
January 18, 2024 | 5:48 pm
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NEUTRAL IMPACT
Bristol-Myers Squibb's Eliquis price increased by 6% to $594, which could lead to higher sales but also attract political scrutiny.
Bristol-Myers Squibb may see an uptick in revenue from the price increase of Eliquis, but the company must be cautious of the political environment and public opinion that could affect its stock.
CONFIDENCE 75
IMPORTANCE 60
RELEVANCE 70
NEUTRAL IMPACT
Eli Lilly's Mounjaro price rose by 4.5% to around $1,070, potentially boosting sales but facing similar risks as Novo Nordisk.
Like Novo Nordisk, Eli Lilly's price increase for Mounjaro may increase revenue in the short term, but the company must navigate potential negative reactions from consumers and politicians.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 80
NEUTRAL IMPACT
Novo Nordisk raised the price of Ozempic by 3.5% to nearly $970, potentially increasing revenue but risking public and political backlash.
The price increase for Ozempic may lead to higher short-term revenues for Novo Nordisk, but it also carries the risk of negative public perception and political scrutiny, which could impact the stock price.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 80
NEUTRAL IMPACT
Pfizer, co-developer of Eliquis, also faces the impact of a 6% price increase to $594, with potential revenue growth and political challenges.
Pfizer's revenue could benefit from the increased price of Eliquis, but the company shares the same risks as Bristol-Myers Squibb regarding public and political response.
CONFIDENCE 75
IMPORTANCE 60
RELEVANCE 70