Prices of new U.S. drugs doubled over the past four years: report

A new Reuters analysis has found that prices of newly launched medications in 2024 have more than doubled in the U.S. compared to 2021 as drug manufacturers have increasingly focused on developing rare disease therapies, which usually attract premium prices.

Citing a survey of 45 drugs, the publication noted that the median annual list price of a newly marketed treatment has exceeded $370K in 2024, over a two-fold rise from 2021, when the median price of 30 drugs launched through mid-July had approached $180K.

The findings come as markets witness a rising number of rare disease therapies, which are typically commercialized at high prices.

According to the IQVIA (IQV) Institute for Human Data Science, 51% of newly marketed drugs in 2019 targeted orphan diseases, a name reserved for conditions affecting less than 200K Americans. The figure has increased to 72% in 2024, with over 40% of orphan drug launches targeting cancer.

Orchard Therapeutics (ORTX), which was acquired by Japanese drugmaker Kyowa Kirin (OTCPK:KYKOF) (OTCPK:KYKOY) last year, has launched the most expensive medication in 2024, Reuters analysis suggested. The one-time gene therapy marketed as Lenmeldy for a rare inherited disorder called early-onset metachromatic leukodystrophy commanded a price tag of $4.25M.

Meanwhile, PTC Therapeutics (NASDAQ:PTC) came in second place with its gene therapy launched at a list price of $3.95M, beating the $3.5M price tag commanded by Pfizer (NYSE:PFE) for its hemophilia drug Beqvez.

The New York-based pharma giant discontinued the one-time gene therapy developed with Roche (OTCQX:RHHBY) (OTCQX:RHHBF) early this year, citing concerns such as low patient uptake and a lack of interest among prescribers.

Treatments from listed drugmakers such as Mesoblast (MESO), Zevra Therapeutics (ZVRA), Adaptimmune Therapeutics (ADAP), and Merus (MRUS) were also part of the top ten list.