Novartis Plans US Drug Price Cuts Amid Government Pressure

Novartis is actively working to reduce the price gap between U.S. drug prices and those in other industrialized countries, responding to pressure from President Donald Trump for significant price cuts. CEO Vas Narasimhan emphasized collaboration with the U.S. government to find constructive solutions that allow Americans to pay less for medicines while maintaining the company's growth outlook. The company is also preparing for potential U.S. tariffs on European pharmaceuticals by shifting more production and packaging activities to the U.S., aiming for substantial changes within the next two to four years. Narasimhan acknowledged that American patients currently bear a large share of innovation costs, and suggested that countries outside the U.S. need to contribute more to pharmaceutical innovation funding. Despite the pressure to lower prices in the U.S., Novartis views the situation as manageable within current legal frameworks and is exploring mechanisms to limit the influence of intermediaries who receive a significant portion of sales revenue. The CEO also pointed out that drug prices in Switzerland are relatively low, and that delays in launching cancer drugs in Europe could increase if price adjustments occur.