Drug prices are set to increase at the start of 2023

The prices of 350 drugs are set to be raised by drugmakers at the start of 2023. 

Pfizer, GlaxoSmithKline PLC, Bristol Myers Squibb, AstraZeneca PLC, and Sanofi SA are some of the many drugmakers planning to raise the prices of drugs, according to a Reuters report. 

The healthcare research firm 3 Axis Advisors reports that one of the reasons for this is high inflation. 

Other factors include supply chain issues and the Inflation Reduction Act, the Washington Examiner reports. The so-called Inflation Reduction Act allows Medicare to negotiate certain drug prices with the pharmaceutical companies, in an attempt to keep prices down, but that doesn't start until 2026. 

"Drug makers have to take a harder look at calibrating those launch prices out of the gate so they don't box themselves into the point where in the future, they can't price increase their way back into profitability," President Antonio Ciaccia of 3 Axis Advisors said to Reuters in an interview.