Novartis, US Government Reach Agreement to Reduce Drug Prices

The Swiss pharmaceutical company will also support initiatives to address global disparities in pharmaceutical innovation.

Novartis has signed an agreement with the US government aimed at lowering the prices of innovative medicines while continuing investment in domestic research and manufacturing.

The Swiss pharmaceutical company will also support initiatives to address global disparities in pharmaceutical innovation.

Under the terms, Novartis will launch future medicines at prices comparable to other high-income countries and establish direct-to-patient platforms for Tabrecta (capmatinib), Mayzent (siponimod), and Rydapt (midostaurin), accessible via TrumpRx. The company will also pursue participation in the GENEROUS (GENErating cost Reductions fOr U.S. Medicaid) Model to improve medicine access for Medicaid patients.

Novartis CEO Vas Narasimhan emphasized the long-term partnership with the US government, stating, “We are committed to working with governments worldwide to ensure innovation is appropriately valued and that our medicines reach the patients who need them most.”

The agreement comes as Novartis continues significant investment in its US infrastructure. Earlier in 2025, the company announced a $23 billion plan over five years to expand research and manufacturing capabilities. This includes a $1.1 billion biomedical research center in San Diego, a flagship manufacturing hub with three facilities in Raleigh/Durham, North Carolina, and a radioligand therapy plant in Carlsbad, California.

Novartis is also advancing plans for additional radioligand therapy manufacturing facilities in Texas and Florida. These developments are expected to make the company eligible for three years of tariff relief, enhancing its US-based production capacity.

The agreement and ongoing investments align with Novartis’ broader strategy to balance innovation and accessibility, aiming to improve patient access to cutting-edge treatments while sustaining domestic research and development initiatives.

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