Prices for two thirds of new drugs are above fair prices for their value
The average new US drug launch price in 2025 was $257,000 and almost a quarter launched above $500,000, according to the latest Launch Price and Access Report by ICER and the West Health. This is a 35% increase from 2022.
Two thirds of the 26 new drugs reviewed exceeded the price range that reflects the overall health benefits the treatment provides patients over their lifetime. Drugs would have needed median price discounts of 64% to 79% to reach prices that reflect their value to patients. The costliest new drug would have needed to be discounted by 95% to meet its value.
Because of these unsubstantiated prices, only 36% of prescriptions for new drugs were filled in 2025. Medicare members faced the most challenges with only 20% of new prescriptions filled. Commercial plan patients were able to fill 51% of new drug prescriptions and 42% of new drug prescriptions for Medicaid patients were filled.
The report’s authors call for drug companies to price drugs at prices that reflect their value in improving health and for streamlined access to new drugs with little or no costs to patients. They are also calling for payers to remove new-to-market coverage blocks and have coverage policies in place within 90 days of FDA approval. Approval for drugs that treat rapidly progressing and/or fatal conditions should be immediate upon FDA approval.
For more information, register for a webinar on the report’s finding October 27th at noon.