This is evident from data from pharmaceutical companies and a data analysis from 3 Axis Advisors. The companies include big names such as Pfizer, Sanofi and GlaxoSmithKline (GSK).
Because people make less use of regular care as a result of the corona crisis and are therefore prescribed medicines less often, the billion-dollar companies are faced with ‘disappointing results’.
New Trump Rules
In addition, President Donald Trump’s administration has introduced new rules to lower drug prices. Pharmaceutical companies therefore make less profit.
Pfizer’s profit fell by more than 46 percent in 2020, according to Macro Trends: in 2019, the company made a profit of $ 16.3 billion, compared to just under $ 8.7 billion this year.
A number of companies have increased prices by up to 10 percent. Major producers such as Pfizer and Sanofi did not exceed 5 percent.
For Pfizer, almost all efforts have recently been put into the development of the corona vaccine. The price increases could help make up for lost revenue.
Pfizer plans to increase the prices of more than 60 drugs by 0.5 to 5 percent. This includes the rheumatoid arthritis treatment Xelja.z and cancer drugs Ibrance and Inlyta.