Novartis and US government reach agreement on lowering drug prices in the US

Core Viewpoint - Novartis has reached an agreement with the US government to lower the price of innovative medicines while supporting continued investment in US manufacturing and R&D [1] Group 1: Agreement and Commitment - The agreement aligns with the US Administration's drug pricing priorities and reflects Novartis's long-term partnership with the US government [1] - Novartis is committed to ensuring that innovation is valued appropriately and that medicines reach patients who need them [1] Group 2: Investment Plans - Novartis has pledged to invest $23 billion in expanding its US R&D and manufacturing infrastructure over the next five years [1] - In recognition of this investment, Novartis expects to receive three years of tariff relief [2] Group 3: New Initiatives - Additional Novartis medicines will be made available through direct-to-patient platforms starting in 2026 [4] - The company plans to launch future medicines at comparable prices across high-income countries and build direct-to-patient platforms for specific drugs [5] Group 4: Manufacturing Developments - Novartis announced a new $1.1 billion biomedical research hub in San Diego, CA, and broke ground on a flagship manufacturing hub in North Carolina [6] - The new manufacturing hub will enable end-to-end capabilities for producing medicines across various technology platforms [6] - A new radioligand therapy manufacturing facility has been opened in Carlsbad, CA, with plans for additional facilities in Florida and Texas [6]