Novartis Puts A Halt To Drug Price Increases While Awaiting More On Trump's Blueprint
Novartis joined Pfizer in agreeing to hold off on any further US drug price increases this year, saying the decision was prudent in the current environment. On Trump's drug pricing blueprint, Novartis said it is carefully monitoring how policy evolves this year before charting a course for 2019.
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Drug price increases have contributed significantly to US revenue growth, about 61% for the 45 largest pharmaceutical products sold over the last three years, according to an analysis by Leerink. Investors should brace for declining growth rates for certain products that generate the bulk of their sales in the US, analyst Geoffrey Porges warned.
A 60% price reduction on hepatitis C drug Zepatier sounds impressive, but the drug has been declining and the HCV space overall is shrinking. Another set of 10% reductions come on small-sellers that are now generic.
J&J told investors to anticipate negative net drug pricing of 4%-6% across its portfolio in 2018, following a 4.6% negative impact in 2017. CEO Alex Gorsky also cautioned against changing drug pricing policy too quickly.