Novartis reaches agreement on lowering drug prices in U.S.

Novartis (NVS) announced it has reached an agreement with the U.S. government that aims to lower the price of innovative medicines in the U.S. and support continued U.S. investment in manufacturing, and research and development. Novartis has voluntarily agreed to take actions aimed at meeting the U.S. Administration’s drug pricing priorities, including: Launching future medicines with comparable prices across high-income countries; Building direct-to-patient platforms for Mayzent, Rydapt and Tabrecta. These new platforms will be accessible through TrumpRx; Applying to participate in the GENEROUS Model aimed at further improving access to medicines in the US Medicaid program; Supporting efforts to address the global imbalance in investment in pharmaceutical innovation. “This agreement continues our long-term partnership with the US government to advance the development and manufacturing of breakthrough treatments for patients in the United States,” said Vas Narasimhan, CEO of Novartis. “We are committed to working with governments worldwide to ensure innovation is appropriately valued and that our medicines reach the patients who need them most.” The company added: “Earlier this year, Novartis committed to investing $23 billion in expanding its US R&D and manufacturing infrastructure over 5 years… In recognition of this investment, Novartis expects to receive three years of tariff relief.”