ICER Report Finds Two-Thirds of New Drug Launch Prices Exceed Cost-Effectiveness Thresholds

Two-thirds of new prescription drugs reviewed by the Institute for Clinical and Economic Review between 2022 and 2025 had launch prices exceeding the watchdog's cost-effectiveness thresholds, the group said in a report published Tuesday. Inflation-adjusted median net prices for new medicines rose from $190,000 in 2022 to $257,000 in 2025, with nearly a quarter of drugs evaluated last year priced above $500,000. ICER urged drugmakers to adopt "fair pricing" and pressed insurers to improve access, noting four in 10 prescriptions for reviewed medicines were rejected, with worse rates for Medicare recipients. The report covered 26 drugs approved between 2022 and 2025. Insmed's Brinsupri and Merck & Co.'s Winrevair showed the widest gaps between net price and value, requiring roughly 90% discounts to meet ICER's guidelines, the group said. Johnson & Johnson and Legend Biotech's Carvykti would need a one-third cut from its $465,000 net price. Vertex's Journavx already falls within ICER's thresholds, while Casgevy may need only a 7% reduction from its $2.2 million net price.