Novartis has announced an agreement with the US government to lower the prices of its medicines in the US and support continued investment in US R&D and manufacturing.
Novartis has agreed to take a variety of actions with the goal of meeting the US government’s current drug pricing priorities. These include:
- Launching future medicines with comparable prices across high-income countries
- Building direct-to-patient platforms for Mayzent (siponimod), Rydapt (midostaurin) and Tabrecta (capmatinib)
- Applying to participate in the GENEROUS (GENErating cost Reductions fOr US Medicaid) programme, designed to further improve access to Medicaid medicines
- Supporting efforts to address global imbalances in pharmaceutical innovation investment.
In 2025, Novartis announced a commitment to invest $23bn to expand its manufacturing and R&D presence in the US over the next five years. Since the announcement in April 2025, Novartis has taken a number of key steps towards this goal. It announced a new $1.1bn biomedical research hub in San Diego, California, as well as a new flagship manufacturing hub in North Carolina. This hub will include three new facilities and enable end-to-end manufacturing capabilities.
Additionally, Novartis opened a new radioligand therapy (RLT) manufacturing facility in Carlsbad, California, and advanced plans to build new RLT manufacturing facilities in Florida and Texas.
The agreement means that US pharmaceutical tariffs on the company will be delayed for three years.
Vas Narasimhan, CEO of Novartis, said: “This agreement continues our long-term partnership with the US government to advance the development and manufacturing of breakthrough treatments for patients in the US.
“We are committed to working with governments worldwide to ensure innovation is appropriately valued and that our medicines reach the patients who need them most.”