The Swiss pharmaceutical company Novartis wants to eliminate the price difference between medicines between the United States and the other industrialized countries.
CEO VAS Narasimhan sees countries outside the United States as a duty to make a higher proportion for innovations. “It is the fact that American patients pay a large part of the innovations,” Narasimhan told the “Neue Zürcher Zeitung” (Saturday).
The background is the claim of US President Donald Trump for price cuts. At the beginning of August, he had set companies such as Roche and Novartis a period of 60 days to reduce their prizes. This is a billion -dollar challenge for companies. Novartis works with the government and try to “find constructive solutions so that the Americans have to pay less for their medication,” said Narasimhan.
Medicine prices are far too low, especially in Switzerland. Compared to other member countries of the OECD, the Organization for Economic Cooperation and Development, they would be at the bottom. In general, however, it cannot be said how many European countries would have to pay. “But today it is already the case with cancer medication that 30 to 40 percent late or not at all come onto the market in Europe,” said the Novartis boss. This proportion will increase over time.
Various mechanisms for possible price cuts are currently checking. The US system is a complex construct with intermediate dealers and discounts. “About half of our gross turnover goes to these middlemen,” said Narasimhan. The greatest chance in the United States is to limit the influence of purchasing organizations.
According to the CEO, Trump’s demand will not affect Novartis’ business prospects in the medium term. “No matter what happens, under the current legal situation in the United States, all changes should be managed.”
/CG // AWP/STW
Bern (dpa-Afx)
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