Drug prices Novartis willincrease the price of a number of its drugs by between 5 and 10percent. Bayer will increase prices for a number of its products byroughly 5 percent. (Photo: Shutterstock)

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Major drug manufacturers are set to significantly increase prices for popular medications nextyear.

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An exclusive report by Reuters is based on information obtainedas a result of a new law in California that requires pharmacompanies to notify state agencies of plans to raise the cost of a medication by more than 16percent over two years.

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The companies planning on increasing prices in the new yearinclude Novartis, Bayer, Allergen, Amgen, GlaxoKlineSmith,AstraZeneca and Biogen. In total, 28 companies plan on pricesincreases substantial enough to trigger the required notificationin California.

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Related: New bipartisan bill targets drug prices–andMylan

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Novartis will increase the price of a number ofits drugs by between 5 and 10 percent. Bayer will increase pricesfor a number of its products by roughly 5 percent.

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“We expect the number of 2019 increases to be even greater thanin past years,” Michael Rea, CEO of Rx Savings Solutions, tellsReuters.

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The price increases undercut President Trump's message that heis cracking down on pharma costs. In August, a number ofdrug-makers announced price freezes or walked back planned priceincreases in response to threats from the president on Twitter.

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At the time, however, industry insiders told Politico that the moves by drug-makerswere an easy way to give Trump a symbolic win in the hopes ofpreventing any meaningful crackdown. The price increases reportednow lend credence to that analysis.

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Pharma also reacted positively to a drug pricing plan unveiledby the Trump administration in May, viewing it as unlikely to havea major impact on prices. The industry began to worry, however,when the administration floated a proposal in October to tieMedicare prices of certain drugs to an international average.

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While drugmakers may have viewed Trump's statements on drugprices as little more than populist posturing, some have voicedconcerns about the prospect of cooperation between the presidentand the new Democratic majority in the House ofRepresentatives.

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