GSK, Advair, Valtrex and Lamictal cut U.S. prices By Reuters

© Reuters. File photo: August 10, 2022 The GlaxoSmithKline (GSK) logo is visible in this image. REUTERS/Dado Ruvic/Illustration//File Photo

(Reuters) – Pharmaceutical company GSK Plc said on Friday it would lower the U.S. list prices of asthma drug Advair, herpes treatment Valtrex and antiepileptic drug Lamictal starting Jan. 1, 2024.

The price cut comes after several companies had already announced insulin price cuts earlier this year. They sought to avoid potential penalties under the American Rescue Plan Act of 2021 if they keep prices high.

By law, drug companies must rebate the Medicaid program when drug price increases outpace inflation, and starting in January 2024, these rebates may be greater than the actual net cost of the drug.

According to a GSK spokesperson, the company plans to cut list prices by up to 70% for Advair, up to 48% for Lamictal and 10% for Valtrex. List prices do not include rebates and other discounts to pharmacy benefit managers.