Industry
ICER Report Finds New Drug Launch Prices Up 35% Since 2022
A new report from the Institute for Clinical and Economic Review and West Health finds the median annual net launch price of new drugs rose 35% from 2022 to 2025 after adjusting for inflation, though prices dipped 2% from 2024 to 2025. The 2025 median net price was about $257,000 annually, with roughly a quarter of new drugs priced above $500,000 and two exceeding $2 million. The report also found access problems: only 36% of outpatient prescriptions for recently launched drugs were filled within 30 days, with Medicare the weakest payer at just 20% filled and 58% rejected for lack of coverage. PhRMA disputes ICER's methodology, arguing it ignores long-term pricing trends and generic competition.
Why it mattersRising launch prices combined with high coverage-denial rates, especially in Medicare, signal growing pharmacy budget pressure and utilization management friction for Medicaid managed care plans administering drug benefits for dually eligible and other high-cost populations.