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Swiss. Novartis Proposes Overhaul for Drug Pricing

CEO Vas Narasimhan does not rule out staggered payments for the most expensive treatments, or their reimbursement in case of insufficient effectiveness

tio ch – December 19, 2018

BASEL – Novartis CEO Vas Narasimhan today called for a major overhaul of drug pricing mechanisms. Through the pages of the "Handelszeitung" it does not exclude staggered payments for the most expensive treatments, or their reimbursement in case of insufficient effectiveness.

The measures could concern, for example, Kymriah gene therapy. Approved in Switzerland at a cost of 370,000 francs per treatment, it is intended for children and adults suffering from specific forms of leukemia.

Novartis also recently made no secret of its ambitions to price the experimental gene treatment Zolgensma (AVXS-101), aimed at combating spinal muscular atrophy type one, at over one million. Developed by the American laboratory Avexis, it was acquired last May for 9 billion dollars (about 8.92 billion francs).

"The health system can hardly neglect vital treatments," said the CEO of the pharmaceutical giant, underlining the need for a rethought dialogue between the parties involved.

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Fedaiisf Federazione delle Associazioni Italiane degli Informatori Scientifici del Farmaco e del Parafarmaco