'Novartis CEO Says Some Cancer Drugs Dropped From Pipeline Because Of Medicare Price Negotiations' - Barrons
Portfolio Pulse from Benzinga Newsdesk
Novartis has dropped some early-stage cancer drugs from its pipeline due to Medicare's new ability to negotiate certain drug prices starting in 2026, according to CEO Vas Narasimhan. The Inflation Reduction Act allows Medicare to negotiate prices for small-molecule drugs nine years after FDA approval, which Narasimhan argues truncates the normal protection period and changes the economics of drug development.
May 19, 2023 | 4:19 pm
News sentiment analysis
Sort by:
Ascending
NEGATIVE IMPACT
Novartis has dropped early-stage cancer drugs from its pipeline due to Medicare's new price negotiation rules, potentially affecting the company's future product offerings and revenue.
The new Medicare price negotiation rules under the Inflation Reduction Act have led Novartis to drop some early-stage cancer drugs from its pipeline. This decision could impact the company's future product offerings and revenue streams, as it may limit the number of new drugs they bring to market. Additionally, the company's stance against the new policy may affect its public image and relations with regulators.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100