Novartis Steps Up to Meet U.S. Drug Pricing Priorities
Basel, December 19, 2025 – Novartis, a leading global innovator in the pharmaceutical industry, has taken a significant step by agreeing to collaborate with the U.S. government on pressing priorities related to drug pricing. This partnership aims to lower the costs of innovative medicines in the United States while simultaneously fostering domestic investment in manufacturing and research and development (R&D).
Meeting U.S. Administration’s Drug Pricing Priorities
As part of this agreement, Novartis has committed to several impactful actions designed to align with the U.S. Administration’s objectives for drug pricing reform. Some key commitments include:
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Comparable Pricing for Future Medicines: Novartis plans to launch future medicines at prices that are consistent across high-income countries. This move aims to create fairness and transparency in pricing, which has been a hot topic in healthcare discussions.
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Direct-to-Patient Platforms: The company will establish direct-to-patient platforms for its medicines, including Mayzent® (siponimod), Rydapt® (midostaurin), and Tabrecta® (capmatinib). These platforms, accessible through the TrumpRx service, will enhance the ease with which patients can obtain necessary medications, thus improving overall access.
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Participation in the GENEROUS Model: Novartis will apply to be a part of the GENEROUS (GENErating cost Reductions for U.S. Medicaid) Model. This initiative is focused on improving healthcare access for individuals enrolled in the U.S. Medicaid program, addressing the needs of underserved populations.
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Global Investment and Innovation Imbalance: The company is also committed to tackling the global disparities in pharmaceutical investment, ensuring that innovation is not stifled due to market dynamics.
Investment in U.S. R&D and Manufacturing
The collaborative agreement with the U.S. is backed by Novartis’ earlier commitment to invest $23 billion over five years to bolster its R&D and manufacturing capabilities within the country. This investment will lay the groundwork for a robust infrastructure that supports the creation of groundbreaking therapies.
Key developments from this investment initiative include:
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New Biomedical Research Hub: Novartis has announced the establishment of a state-of-the-art $1.1 billion biomedical research facility in San Diego, California, designed to spur innovation and development in new treatments.
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Flagship Manufacturing Hub: The company has broken ground on a significant manufacturing hub in North Carolina, which will feature three new facilities. This hub will enable comprehensive manufacturing processes, showcasing Novartis’ commitment to end-to-end production capabilities.
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Radioligand Therapy Facilities: A new manufacturing facility specifically for radioligand therapies (RLT) has opened in Carlsbad, California, with further plans to expand capacity with new facilities in Florida and Texas.
Future Outlook and Tariff Relief
In recognition of its substantial investments in U.S. operations, Novartis anticipates receiving three years of tariff relief. This aligns with the broader governmental aim of fostering an environment conducive to investment in healthcare, emphasizing the essential partnership between the pharmaceutical industry and public policy.
A Vision for Global Health
Vas Narasimhan, the CEO of Novartis, eloquently expressed the company’s long-standing commitment to collaboration with government entities to enhance healthcare. He stated, “This agreement continues our long-term partnership with the U.S. government to advance the development and manufacturing of breakthrough treatments for patients in the United States.” The essence of Novartis’ mission is to ensure that innovative treatments reach the patients who need them most.
About Novartis
As an innovative medicines company, Novartis champions the reimagination of medicine to improve patient outcomes and extend lives. The company’s expansive reach means that its medicines benefit nearly 300 million people worldwide. Through continuing investments in research and partnerships, Novartis aims to empower healthcare professionals and communities in addressing serious health challenges.
For more information on Novartis’ endeavors, visit Novartis Official Website and connect with the company on LinkedIn, Facebook, Twitter, and Instagram.
This structured commitment from Novartis illustrates a proactive approach to healthcare reform, emphasizing both affordability and accessibility for patients across the United States.
