Pharmaceutical pricing

Extracted Attributes

• US Unbranded Generic Price

  67% of the average price in non-US OECD countries

• Key US Negotiating Entities

  Department of Health and Human Services (HHS), Department of Veterans Affairs (VA)

• Proposed US Reform Strategy

  Most Favored Nation (MFN) status

• Primary Regulatory Body (India)

  National Pharmaceutical Pricing Authority (NPPA)

• US Originator Drug Price Premium

  422% higher than non-US OECD countries

• US Overall Prescription Drug Price Gap (2022)

  278% higher than non-US OECD countries

Timeline

• The National Pharmaceutical Pricing Authority (NPPA) is constituted in India as an independent regulator. (Source: Wikipedia)

  1997-08-29

• US prescription drug prices are recorded as 256% higher than non-US OECD countries combined. (Source: GLOBE Model Research)

  2018-12-31

• Updated study shows the US drug price gap widened to 278% compared to non-US OECD countries. (Source: GLOBE Model Research)

  2022-12-31

• Johnson & Johnson is identified as the largest pharmaceutical company by revenue, earning $88.82 billion. (Source: Investopedia)

  2024-12-31

• Scheduled update for pharmaceutical pricing data for VA National Acquisition Center (NAC) programs. (Source: VA.gov)

  2025-12-15

• Target date for the Trump administration's economic strategy to hit 5-6% GDP growth, supported by domestic reforms like pharmaceutical pricing adjustments. (Source: Document bd9e52ad-b427-4759-a3de-cdaa5cd4d3e7)

  2026-01-01

National Pharmaceutical Pricing Authority

The National Pharmaceutical Pricing Authority (NPPA) is a government regulatory agency that controls the prices of pharmaceutical drugs in India. National Pharmaceutical Pricing Authority (NPPA) was constituted vide Government of India Resolution dated 29 August 1997 as an attached office of the Department of Pharmaceuticals (DoP), Ministry of Chemicals and Fertilizers as an independent Regulator for pricing of drugs and to ensure availability and accessibility of medicines at affordable prices.

Web Search Results

• [PDF] Global Pricing Strategies for Pharmaceutical Product Launches

  REFERENCE PRICING The concentration of purchasing power to payers (often government agencies) in global markets is of little conse-quence to optimal pricing without other regulatory con-straints. As has become well publicised, though, many regulatory agencies have pursued a host of methods intended to limit the prices that a pharmaceutical manu-facturer can charge. One example of these policies is ref-erence pricing. Under a reference pricing framework the price of a pharmaceutical therapy is affected by the price of a reference drug. The reference product might be another drug in the same therapeutic class; it might be a drug with the same clinical indications; and it may or may not be available in the country of interest. Canada, for example, sets drug prices by comparing with prices [...] Global Pricing Strategies for Pharmaceutical Product Launches Chapter 2 of The Pharmaceutical Pricing Compendium A Practical Guide to the Pricing and Reimbursement of Medicines www.pharmaceuticalpricing.com P Peter J eter J. . R Rankin, ankin, Associa Associate Principal te Principal Gr Gre eg gor ory K. y K. Bell, Bell, Gr Group oup V Vice Pr ice President esident Tim Tim W Wilsdon, ilsdon, Principal Principal Article Summary This article provides a brief strategic overview of the types of constraints that manufacturers must overcome in order to implement a successful global product launch and determine the optimum price. [...] Each of these issues is now explored in detail. PRICE NEGOTIATIONS A stark and immediate consideration for pharmaceutical manufacturers used to launching pharmaceuticals in the US, UK or Germany is that few other global markets allow free pricing. Instead, there is often a period of time between regulatory or technical approval and commercial-isation, during which manufacturers negotiate with regula-tors to establish the price at which the new product will be marketed, or at least reimbursed.

• Pharmaceutical Prices - Office of Procurement, Acquisition ... - VA.gov

  VA » Office of Procurement, Acquisition and Logistics (OPAL) » NAC Home » FSS Home » Pharmaceutical Prices # Office of Procurement, Acquisition and Logistics (OPAL) ## Pharmaceutical Prices Tel: (708) 786-7737 fss.help@va.gov Contacts Survey The Federal Supply Schedule (FSS) Service awards multi-year, multiple award federal contracts that are available for use by any eligible Federal Government agency. It satisfies all Federal contracAt laws and regulations. Pricing is negotiated based on how vendors do business with their commercial customers. The FSS program may also provide additional opportunities for savings with negotiated quantity and tier discounts, along with contract-specific voluntary temporary price reductions. [...] VA National Contracts are mainly requirement-type contracts that offer additional pricing concessions in return for commitment to potential vendors. The VA National Contract program results in pricing lower than FSS and is used for VA’s standardization efforts. The VA National Contracts program is a separate contract vehicle from the FSS contract program. The Pharmaceutical pricing data (as of 12/15/2025) for all VA National Acquisition Center (NAC) programs, including FSS and National Contracts, is updated on or around the 2nd and 16th of each month. Possible errors have been identified in the 01/01/2019 thru 03/01/2019 files. Corrected files may be viewed in the OALC FOIA library. [...] Search [site map [a-z]]( "Site Map A-Z") Attention A T users. To access the combo box on this page please perform the following steps. 1. Press the alt key and then the down arrow. 2. Use the up and down arrows to navigate this combo box. 3. Press enter on the item you wish to view. This will take you to the page listed. Menu Menu

• How Pharmaceutical Companies Price Their Drugs in the U.S.

  ## Issue of Pricing Pricing a drug incorrectly is a mistake that drug companies strive to avoid. Pricing a drug too low or too high has a great impact on its potential for success. For example, if a drug is priced too high, payers may be unwilling to reimburse for it or physicians may be disinclined to prescribe it. They may believe the drug is not worth the high cost if it is likely that it will offer too little benefit to warrant the cost. On the other hand, if a drug is priced too low, physicians may conclude that it offers a discounted form of therapy, less effective than a more expensive drug that already exists. [...] ### Fast Fact Johnson & Johnson was the largest pharma company by revenue in 2024, which earned $88.82 in sales that year.89 Drugs that can cut down on expensive surgeries, hospital trips, and doctor visits are often priced higher because of the savings they offer customers on the back end. Drug companies also issue higher prices to drugs that can extend or even save lives. Ultimately, the main objective of pharmaceutical companies when pricing drugs is to generate the most revenue. This often means facing competition, which serves to drive prices lower. However, drug companies have balanced pricing drugs too low, with the ability to enact price increases at steady intervals. ## Issue of Pricing [...] The research and development (R&D) involved with each drug is another monumentally important issue related to its price. The amount of time, effort, and money that a pharmaceutical company invests in the R&D for each drug must be weighed when the drug is priced. This often leads to higher prices to ensure that the revenue generated will exceed the expenditures behind the drug’s development. ## Why Do Pharmaceutical Companies Raise Their Prices? Pharmaceutical companies raise their prices to earn more revenue. Pharma companies often state that price increases are necessary to fund their continuing research into new drug discoveries. In addition, as some patented drugs face no competition, pharma companies can raise prices without customers having suitable alternatives.1

• Regulation of Prescription Drug Pricing - AMCP.org

  pharmacy benefit managers (PBMs), government agencies, wholesalers, retail pharmacies, and pharmaceutical manufacturers.11 These relationships can influence pricing trends as the various players work to manage costs. For example, a rebate for a drug negotiated between a PBM and a manufacturer may inflate the list price for the drug. In fact, “on average, a $1 increase in rebates is associated with a $1.17 increase in list price.”12 Although rebates allow negotiations to reduce net prices, they may also disincentivize the adoption and use of therapeutic equivalents such as biosimilars and generics.13 These various factors and relationships are highly complex and create a system where there is no easy solution to high drug prices. Potential Solutions AMCP understands the desire to seek a [...] Department of Health and Human Services (HHS) to negotiate prices for certain drugs in Medicare, cap out-of-pocket spending for seniors, impose penalties on drug price increases that are greater than inflation, and limit patient cost sharing for insulin.4 As we examine the multifaceted landscape of prescription drug pricing, it is essential to recognize the complexities—from manufacturing costs and regulatory influences to market competition and insurance coverage—collectively shaping the affordability and accessibility of medications. [...] price protection, purchasing discounts, government coverage mandates, the 340B program,9 and group purchasing organization fees, further reducing transparency into the causes of rising costs. Additionally, while patient assistance programs serve a vital role in increasing medication access for some patients, higher drug prices may be set to balance the discounts which could then lead to higher prices for insurers or government programs.10 Finally, regulatory pricing pressures due to the implementation of the IRA, the ACA, and other legislative and regulatory changes also impact drug prices. The healthcare system in the United States is highly regulated, including an intricate web of relationships between health plans and other payers, pharmacy benefit managers (PBMs), government agencies,

• Global Benchmark for Efficient Drug Pricing (GLOBE) Model

  ASPE funded research published in July 2022 indicated that U.S. prescription drugs prices exceeded those of non-U.S. OECD countries combined by 256 percent  using 2018 data. In 2024, the study was updated with pricing information from 2022 and showed an even larger gap of 278 percent compared to non-U.S. OECD countries combined. When comparing the U.S. against individual G7 countries, the price differential ranged from 229 percent higher than Canada to 347 percent higher than Japan. [...] This analysis reveals even larger pricing differences when examining ( printed page 60251) originator drugs separately. U.S. originator drug prices are 422 percent higher than non-U.S. OECD countries combined. Among individual G7 countries, the difference between U.S. and the international prices ranged from 324 percent higher than Canada to 464 percent higher than Japan. These data points indicate there are significant cost differences within the global pharmaceutical market for U.S. originator drugs and international originator drugs. [...] In contrast, the unbranded generic drug market, not including biologics such as biosimilar biological products, shows different pricing dynamics. The same study showed U.S. unbranded generic pricing was 67 percent of the average price among non-U.S. OECD countries. The comparison of U.S. prices to individual G7 countries for unbranded generic drugs shows pricing that is 39 percent lower than Canada and 46 percent lower than Germany. This indicates that pricing patterns vary significantly between originator drugs and generic drugs in the U.S. market.