BIG PHARMA WATCH: CEO UNDERCUTS OWN INDUSTRY’S DOOM AND GLOOM RHETORIC ON RECENT DRUG PRICING SOLUTIONS

Novartis Exec Calls Policy to Keep Price Hikes Below Inflation “Manageable” and Suggests Rx Solutions Will Have No Impact on Profits

Big Pharma giant Novartis signaled plans at an investor event Thursday to invest more in the U.S. market despite doom and gloom rhetoric from the pharmaceutical industry around the inclusion of drug pricing solutions in the recently passed Inflation Reduction Act of 2022 (IRA).

During the event, Novartis CEO Vas Narasimhan undercut Big Pharma’s claims that solutions, that included keeping price hikes below the rate of inflation and making brand name manufacturers contribute to the most expensive phase of coverage in Medicare Part D, would negatively impact pharmaceutical innovation or access to cures.

Narasimhan called solutions to keep Big Pharma’s price hikes below the rate of inflation in the Medicare market “manageable.” Narasimhan also suggested the policy wouldn’t diminish company profits (or therefore its ability to invest in research and development), saying he expected “no changes for our guidance with respect to managing through the inflation caps.”

These comments and Novartis’ move to invest more in the U.S. market underscore that solutions to lower prescription drug prices by holding Big Pharma accountable for egregious pricing and anti-competitive practices can deliver real relief for patients — and have a minimal impact on Big Pharma giants flush with sky-high profits.

Read more from Reuters on Novartis’ plans HERE.

Read more about Big Pharma’s debunked arguments opposing drug pricing solutions HERE.

Learn more about bipartisan, market-based solutions to hold Big Pharma accountable HERE.