Novartis to Test Risk-Sharing Pricing Model for Heart Failure Drug Entresto

The Swiss drug giant Novartis is looking at alternate pricing models for its heart failure drug Entresto, which is expected to gain FDA approval in August.

Proven to improve heart function in individuals with a reduced ejection fraction, Entresto, also called LCZ696, will probably earn significant annual revenue for Novartis, projected in the billions. However, according to David Epstein, division head of Novartis, the company is working with healthcare systems to introduce a new outcomes-based payment model, where the initial discounted rate will be balanced by increased payments to Novartis if the drug reduces hospital visits.

The healthcare industry is gradually moving towards such clinical-outcomes—based risk-sharing models, and Novartis has already has a system in place for this for it's multiple sclerosis drug Gilenya.

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