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3 Big Pharma Stocks Driving Price Inflation

TheMotleyFool

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3 Big Pharma Stocks Driving Price InflationPhoto, wide shot, wide-angle lens, Pharmaceutical company, Midday, harsh overhead sunlight, directional sunlightt, photo by Art Wolfe: https://img.midjourneyapi.xyz/temp/7ae4a134-dd01-4c80-a621-18399f5a2541.png

America is just about the only place on earth that allows drugmakers to set and raise the price of successful drugs to whatever the market will bear, and it shows. Between the fourth quarter of 2016 and the fourth quarter of 2018, the big biopharmaceutical companies below raised prices for these popular treatments at a rate four times faster than inflation.

Sometimes new clinical data shows a drug's benefit is better than everyone thought and an argument can be made that the new price reflects the new information. That hasn't happened with these drugs, but the companies announced huge price increases anyway.

Data source: Institute for Clinical and Economic Review. WAC = Wholesale acquisition cost. Q4 = Fourth quarter.

Source Fool.com

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