The Institute for Clinical and Economic Review (ICER) has identified five prescription drugs whose price increases in 2023 lacked sufficient clinical evidence to justify the hikes.

Gilead Sciences Inc's (NASDAQ:GILD) Biktarvy, Johnson & Johnson's (NYSE:JNJ) Darzalex, Novartis AG's (NYSE:NVS) Entresto, Exelixis Inc (NASDAQ:EXEL) Cabometyx, and Pfizer Inc's (NYSE:PFE) Xeljanz are among the five drugs flagged for unsupported price increases.

These five drugs' unsupported net price increases produced $815 million in incremental added costs to U.S. payers in 2023. These price increases contributed significantly to the overall spending surge.

ICER's analysis revealed that the other five drugs on the list did demonstrate new clinical evidence to justify their increased costs.

Merck & Co Inc's (NYSE:MRK) Keytruda, AstraZeneca Plc's (NASDAQ:AZN) Imfinizi and Tagrisso, Bristol Myers Squibb & Co's (NYSE:BMY) Opdivo, and Amgen Inc's (NASDAQ:AMGN) Prolia

The findings are part of ICER's latest Unsupported Price Increases (UPI) report, which examines the top 10 drugs with significant net price increases in the past year.

ICER's Vice President of Research, Dr. Foluso Agboola, highlighted the impact of these price hikes, noting they exceed inflation rates and strain the healthcare system.

The ICER report highlighted that Gilead's Biktarvy saw its wholesale acquisition cost increase by 5.9%, with its hike costing U.S. payers $359 million in additional drug spending.

According to the ICER report, the Darzalex price before discounts increased by 7.6%, compared to 6.2% for Entresto, 7.5% for Cabometyx, and 6% for Xeljanz.

Those price increases added an additional $190 million, $108 million, $86 million, and $72 million to 2023 U.S. drug spending, respectively.

Methodology Behind ICER's Findings

• ICER's evaluation followed a detailed protocol introduced in April 2024. The organization assessed drugs meeting criteria such as ranking among the top 250 by U.S. sales revenue and exceeding consumer price index growth plus 2% in their Wholesale Acquisition Cost.
• The analysis focused on distinguishing price increases driven by value from those unrelated to new clinical evidence.
• Manufacturers provided input, and ICER reviewed published studies for evidence of additional health benefits.

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This article Drug Price Hikes Unsupported By Evidence Cost US $815 Million: ICER Report originally appeared on Benzinga.com

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