Novartis CEO Warns Trump Drug Pricing Policy Reality Will Hit in 18 Months
Novartis CEO Vas Narasimhan warned that Trump's drug pricing policy will create a "very difficult situation" as the reality sets in over the next 18 months. The policy aims to make U.S. drug prices match what European countries pay.
Novartis CEO Vas Narasimhan joined other drug company leaders in warning about Trump's new pricing policy. The plan, called "most-favored nation," would force U.S. drug prices to match what European and other wealthy countries pay.
Narasimhan said the reality of this policy will become clear over the next 18 months. He warned it poses a "very difficult situation" for drug companies and could affect Europeans' access to medicines.
Novartis is having weekly talks with the Trump administration to find solutions. The company is exploring ways to meet the president's goal of lowering U.S. drug prices while still being able to develop new medicines.
However, Narasimhan said Trump's approach doesn't fix the root problem of high drug costs. He doesn't expect any policy resolution soon, even with ongoing discussions between the company and White House officials.
This policy could lower what Americans pay for prescription drugs by matching prices in Europe. But it might also affect which medicines are available in the U.S. if drug companies can't make enough profit.
Watch for more details on Trump's drug pricing policy over the next 18 months as companies adapt to new rules.
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