Cheaper prescription drugs might seem like a good thing. But Wall Street analyst Michael Yee told CNBC that the trend of recent companies announcing they will lower or are considering lowering prices is not all it's cracked up to be.

"The important takeaway that investors should understand about the recent developments is that while there are either no price increases or in some cases, with Merck, price decreases, very interestingly, the drugs that they reduced prices on were either small drugs or very insignificant drugs," Yee, an analyst at Jefferies, said Friday on "Power Lunch."

In Merck's case, the U.S. pharmaceutical giant announced on Thursday that it would limit price hikes on select drugs or lower the price of some treatments, including a 60 percent price cut on hepatitis C treatment Zepatier.

But Yee pointed out that the medication had declining sales in its last earnings report, bringing in less than $300 million in sales, compared with $468 million in a previous report.

Merck declined to comment to CNBC on Yee's statements.