economy
Novartis CEO warns reality of Trump's drug pricing policy will set in over 'the next 18 months'
Novartis' CEO warned Tuesday that U.S. drug pricing policy under President Donald Trump poses a 'very difficult situation.'
TL;DR
- Novartis CEO warns U.S. drug pricing policy (MFN) will lead to significant challenges in the next 18 months.
- CEO urges European and Japanese governments to revise innovation reward systems to prevent delayed drug entry and patient access.
- Companies like Roche and AstraZeneca have also flagged risks in European markets due to unfavorable pricing policies.
- The MFN policy ties U.S. drug prices to those in wealthier comparable countries.
- Novartis reported a 1% year-on-year sales decline in the first quarter, below analyst expectations.
- Generic competition significantly impacted sales of Entresto, Promacta, and Tasigna.
- Sales of heart drug Entresto fell 42% after U.S. patent expiry.
- Novartis anticipates a growth pickup in the second half of the year.