The median net price for newly launched prescription drugs has increased by 51% over a three-year period, significantly outpacing inflation, according to a new analysis from the Institute for Clinical and Economic Review (ICER). The findings highlight growing concerns about pharmaceutical pricing and its impact on healthcare spending.
Substantial Price Increases Despite Inflation Adjustments
ICER's Launch Price and Access Report analyzed 154 novel agents approved by the FDA Center for Drug Evaluation and Research (CDER) and Center for Biologics Evaluation and Research (CBER) between 2022 and 2024. The analysis revealed that median net prices—after accounting for rebates, discounts, and other reductions—rose by 51% when adjusted for inflation.
Simultaneously, the median list price for these drugs increased by 24% during the same period after inflation adjustments. The divergence between list and net price increases indicates varying discount structures across different drug categories, though the exact reasons were not analyzed in detail.
"The launch prices in terms of net prices continue to rise," said Foluso Agboola, ICER's Senior Vice President of Research. "We see the majority of the drugs are still priced way higher than what ICER suggests is a fair price, and we were able to estimate what the cost is as a society."
Significant Healthcare System Impact
When ICER examined 23 drugs from the 154-drug cohort that it had previously reviewed, 16 had annual net prices exceeding the upper limits of its Health Benefit Price Benchmark. This pricing structure resulted in estimated first-year spending of $1.92 billion, compared with $431 million to $661 million if prices aligned with the benchmark.
The analysis suggests the U.S. healthcare system could have saved between $1.26 billion and $1.49 billion in the first year after approval if drug prices had been aligned with ICER's health benefit price benchmark.
Dramatic Price Reduction Requirements
Several high-profile therapies would require substantial discounts to meet ICER's pricing standards. Merck's Winrevair (sotatercept-csrk), approved in 2024 for pulmonary arterial hypertension treatment, carries an annual net price of $196,112 but would need discounts of 81.9% to 90.9% to fall within ICER's recommended range.
Similarly, BridgeBio's Attruby (acoramidis), approved for transthyretin amyloid cardiomyopathy with a net price of $183,404, would require discounts of 78.7% to 92.6%. Other therapies showed more modest reduction requirements, including the gene therapy Casgevy (exagamglogene autotemcel) for sickle cell disease, which would need discounts of 6.8% to 38.6%, and Alzheimer's drug Leqembi (lecanemab-irmb), requiring reductions of 18.8% to 66.4%.
Patient Access Challenges Persist
Beyond pricing concerns, ICER's analysis revealed significant access barriers for newly launched drugs. Among novel drugs approved in 2024, insurance coverage policies were not publicly available for the majority, even up to one year after approval. For patients with commercial insurance in the first quarter of 2025, approximately half of prescriptions were rejected.
Focus groups conducted with patient advocacy organizations revealed challenges extending beyond insurance coverage, including step therapy requirements, prior authorization processes, healthcare system complexity, and health inequities.
"There were challenges with insurance coverage, related to step therapy and prior authorization as we would expect," Agboola noted. "But there were also other noninsurance barriers to access, including the complexity in our healthcare system that makes it more difficult for patients, or the health inequity in our system."
Industry Response and Methodology Concerns
The National Pharmaceutical Council has criticized ICER's analysis, arguing it fails to capture the full value medicines provide over their lifecycle. Kimberly Westrich, NPC chief strategy officer, described the report as having "methodological, data, and analytic shortcomings" and criticized what she termed a "biased and misleading 'overspending' analysis."
ICER used its equal value life years (evLYs) lost assessment, assuming $100,000 spent equals one evLY lost, to determine necessary discounts for alignment with its health benefit price benchmark. The organization reached out to manufacturers to verify net price estimates and requested their own economic evaluations, though transparency in manufacturer assumptions remained limited.
