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J&J says kept drug price increases below 10 percent since 2012

Published 27/02/2017, 19:34
© Reuters. A Johnson & Johnson building is shown in Irvine, California

By Michael Erman

NEW YORK (Reuters) - Johnson & Johnson (N:JNJ) on Monday said the average list price of its drugs rose less than 10 percent each year since 2012, noting that the net price paid for the drugs, which includes discounts and rebates, was significantly lower.

The company released a report with its price increase history in response to widespread outcry over high U.S. prices for prescription drugs. U.S. President Donald Trump has said drug companies are "getting away with murder" in what they charge the government for medicines.

Johnson & Johnson, which makes Remicade for rheumatoid arthritis and the blood thinner Xarelto, said in 2016 the average increase in list price for its drugs was 8.5 percent, while the net price change was 3.5 percent.

The highest average price increases at the company over the five-year period were in 2015, when the average list price rose 9.7 percent from the previous year and the average net price increase was 5.2 percent.

The company said it generally limits its annual aggregate list price increase to single digit percentages.

Merck (N:MRK) released a report on its own pricing history last month, revealing slightly larger average increases over the five year period than Johnson & Johnson.

© Reuters. A Johnson & Johnson building is shown in Irvine, California

In response to the criticism of high drug prices, AbbVie Inc (N:ABBV), Allergan (N:AGN) and Danish diabetes company Novo Nordisk (CO:NOVOb) have pledged to keep all drug price increases in 2017 under 10 percent.

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