Novartis Freezes Its Drug Prices -- WSJ
July 19 2018 - 3:02AM
Dow Jones News
By Donato Paolo Mancini and Brian Blackstone
This article is being republished as part of our daily
reproduction of WSJ.com articles that also appeared in the U.S.
print edition of The Wall Street Journal (July 19, 2018).
Novartis AG won't increase its U.S. drug prices for the rest of
2018, the Switzerland-based drugmaker said Wednesday, days after
Pfizer Inc. took a similar step following criticism from President
Donald Trump.
In an interview, Novartis Chief Executive Vas Narasimhan said
the company would evaluate its strategy for 2019 when it has more
clarity on the pricing environment.
"Let's see how this unfolds for the rest of this year," he
said.
Last week, Pfizer said it would defer some recent drug-price
increases, reversing course after Mr. Trump criticized the company
for its plans to raise the prices of more than 40 drugs.
Novartis disclosed last month that it was reeling back price
increases that had previously been slated for the third quarter, a
company spokesman said.
Mr. Narasimhan didn't speak directly with Mr. Trump about
pricing, the company said, adding it had been in contact with the
U.S. Department of Health and Human Services in the context of the
administration's blueprint to curb drug prices that was unveiled in
May.
The comments on pricing came as Novartis reported a rise in
second-quarter revenue and profit. Novartis also backed its outlook
for 2018 and reiterated that it considered the Michael Cohen affair
over, following weeks of turmoil in which the company has been
scrutinized over its ties to Mr. Trump's former personal
attorney.
The $1.2 million consulting deal between Novartis and Mr.
Cohen's company, Essential Consultants LLC, came to light in May.
At the time, the company said the deal had been a mistake.
"I view the Cohen issue as closed," Mr. Narasimhan said
Wednesday.
Novartis said net sales grew to $13.2 billion from $12.2 billion
in the second quarter, mainly underpinned by drugs Cosentyx and
Entresto. Its oncology division posted growth throughout the year
after losing exclusivity for its blockbuster drug
Gleevec/Glivec.
It said net profit rose to $7.8 billion from $2 billion,
benefiting from a $5.7 billion net gain from the sale of its stake
in a consumer health care joint-venture with GlaxoSmithKline PLC.
Novartis said it expected group net sales to grow at a low- to
mid-single digit rate this year.
Back in May, Novartis said it hired Mr. Cohen for insight into
how "the Trump administration might approach U.S. health-care
policy matters," but that executives realized from their first
meeting with him in March 2017 that he wouldn't be helpful and
stopped engaging with him.
A report by four Democratic Senators last Friday disputed much
of the company's account of the interaction, saying Novartis had
played down its ties to Mr. Cohen and that contact lasted six
months longer than initially claimed.
Mr. Narasimhan said Wednesday he hasn't received any further
requests from political or legal authorities for additional
information on the matter.
Last Friday, Novartis said it disagreed with the Senate report's
conclusion and repeated that entering the agreement with Mr. Cohen
had been an error.
The scrutiny comes as Novartis works to refocus its operations,
planning to spin off its Alcon eye-care unit, which analysts
estimate could be valued at more than $20 billion. Earlier this
month, the company also said it would abandon antiviral and
antibiotic research, the latest in a string of big-pharma
departures from the field.
Write to Brian Blackstone at brian.blackstone@wsj.com
(END) Dow Jones Newswires
July 19, 2018 02:47 ET (06:47 GMT)
Copyright (c) 2018 Dow Jones & Company, Inc.
Novartis (NYSE:NVS)
Historical Stock Chart
From Apr 2024 to May 2024
Novartis (NYSE:NVS)
Historical Stock Chart
From May 2023 to May 2024