• UPDATE: Novartis reaches agreement with US government to lower drug prices
BASEL, Switzerland – Novartis announced on Friday it has reached a voluntary agreement with the US government aimed at lowering the price of innovative medicines in the United States.
The company will take several actions on drug pricing and expand patient access platforms starting in 2026.
What is new?
Novartis has entered a voluntary agreement with the United States government designed to reduce the cost of its innovative medicines within the US. The agreement also aims to support continued American investment in pharmaceutical manufacturing, research, and development.
The company stated its commitment to working with governments to ensure its medicines reach patients while valuing innovation.
Key Commitments
As part of the agreement, Novartis has voluntarily agreed to several actions to meet the US Administration’s drug pricing priorities. The company will launch future medicines with prices comparable to those in other high-income countries. It will also establish new direct-to-patient platforms for the medicines Mayzent® (siponimod), Rydapt® (midostaurin), and Tabrecta® (capmatinib) in 2026, which will be accessible through TrumpRx.
Additionally, Novartis will apply to participate in the GENEROUS (GENErating cost Reductions fOr U.S. Medicaid) Model, which is aimed at improving access to medicines for patients in the US Medicaid program. The company will also support efforts to address the global imbalance in pharmaceutical innovation investment.
US Investment and Tariff Relief
The agreement follows a commitment made by Novartis earlier this year to invest $23 billion over five years to expand its research, development, and manufacturing infrastructure in the US. Since that announcement in April, the company has broken ground on a new manufacturing hub in North Carolina, announced a $1.1 billion biomedical research hub in San Diego, and opened a new radioligand therapy (RLT) manufacturing facility in Carlsbad, California. Novartis is also advancing plans for new RLT facilities in Florida and Texas.
In recognition of these investments, Novartis stated that it expects to receive three years of tariff relief from the US government.
About this company
Novartis is a Swiss-based innovative medicines company focused on developing and manufacturing treatments to improve and extend people’s lives. The company works to empower patients, healthcare professionals, and societies in the face of serious diseases. According to Novartis, its medicines reach nearly 300 million people worldwide.
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