It’s a common belief that rising drug prices are due to the high cost of cutting-edge medications, with manufacturers charging a bundle to make back development expenses for their new products.
But drug companies have also been steadily hiking prices on older brand-name drugs, a new study reports.
Increasing prices for brand-name pills outpaced the nation’s overall rate of inflation nearly fivefold between 2005 and 2016, with consumers paying about 9 percent more every year for the same old drugs between 2005 and 2016.
The price of injectable brand-name drugs increased by 15 percent yearly during the same period, researchers found.
“In the brand-name market, prices are increasing really fast and that’s almost solely due to inflation in existing products,” said lead researcher Inmaculada Hernandez. She’s an assistant professor at the University of Pittsburgh School of Pharmacy.