Currently Viewing:
Currently Reading
Headache Disorders Play Significant Role in Disability Globally and Require More Attention, Study Finds
December 12, 2018 – Alison Rodriguez
Pennsylvania Auditor General Calls for Action on PBMs
December 12, 2018 – Allison Inserro
Diet Has Minimal Association With Breast Cancer Risk in Postmenopausal Women, Study Finds
December 12, 2018 – David Bai, PharmD
Myelofibrosis Survival After Discontinuing Ruxolitinib Differs Based on Reason for Discontinuation
December 12, 2018 – Jaime Rosenberg
What We're Reading: Bill Targets Maternal Mortality Rates; Cutting Drug Prices; US Biosimilar Adoption
December 12, 2018 – AJMC Staff
What We're Reading: High Court Lets Abortion Cases Stand; NIH and Fetal Tissue; Dsuvia Examined
December 11, 2018 – AJMC Staff
Durvalumab Combination Fails to Meet Primary End Point in NSCLC Trial
December 11, 2018 – Samantha DiGrande
Rate of Uninsured Increased in 2017 for the First Time Since 2014
December 11, 2018 – Allison Inserro
More Than 300 Groups Seek Halt to CMS' Plans for Global Drug Pricing Index
December 10, 2018 – Allison Inserro

Novartis Will Freeze Drug Prices Through End of 2018, CEO Says

AJMC Staff
The Swiss drug maker is the second pharmaceutical company to announce a halt to price hikes, coming after Pfizer's decision last week to reverse planned increases.
Swiss drug maker Novartis said early Wednesday it does not plan to raise prices through the end of the year, as it talks with US health officials about the Trump administration's plan to cut what consumers pay for prescription drugs.

The announcement came as part of the company’s second quarter earnings call. CEO Vasant Narasimhan said that the move was “prudent” in light of “a very dynamic environment in the United States.”  

Pfizer announced last week that it would halt drug prices through the end of 2018, after CEO Ian Read spoke with President Donald Trump. Pfizer also said it would revisit price increases in 2019, to allow time for the administration to implement pieces of a blueprint, American Patients First, that includes dozens of policy ideas for reducing prices and out-of-pocket costs for patients.

Narasimhan told Reuters that while he had not spoken with Trump directly, company officials were having conversations with HHS about the blueprint and how it would affect the drug maker. Of note, the administration has said it wants to promote manufacturing of generics and biosimilar; Novartis’ generic unit, Sandoz has been under pricing pressure.

Monday was the deadline for comments on the blueprint via a formal Request for Information. The industry trade group, the Pharmaceutical Research and Manufacturers of America, issued an extensive response that called for severing the link between compensation levels for pharmacy benefit managers (PBMs) and rebates paid to them from drug companies. PBMs have been blamed for driving up the price of drugs.

Narasimhan said the pricing freeze had nothing to do with fallout over reports that the company’s previous CEO paid Trump attorney Michael Cohen $1.2 million for insights on the administration’s healthcare positions in the year after the 2016 election. Cohen is now under federal investigation in the Southern District of New York.

Related Articles

What Is and Is Not in Trump's Drug Pricing Plan: An Interview With Dr Michael Chernew
Azar Tells 340B Meeting "Change Is Coming" After Trump Tweets About Drug Prices
From Patient Advocates to Pharma, Groups Weigh in on Trump Blueprint for Drug Costs
Copyright AJMC 2006-2018 Clinical Care Targeted Communications Group, LLC. All Rights Reserved.
Welcome the the new and improved, the premier managed market network. Tell us about yourself so that we can serve you better.
Sign Up

Sign In

Not a member? Sign up now!