At Novartis, we are pushing the boundaries of science to reimagine medicine and bring the benefits of transformative innovation to patients everywhere. As part of this commitment, we are working diligently with a wide range of stakeholders to ensure that patients have access to the latest therapies, that these therapies are properly valued and rewarded by the healthcare system, and that we place higher value on the impact medicines have on human health rather than the volume of treatments the healthcare system delivers.
With important new medical breakthroughs in the clinic and on the horizon – including cell and gene therapies, which offer new hope for patients with deadly diseases – Novartis believes it is imperative for us to act now. We must accelerate a fundamental transformation in the US healthcare system to support access to novel therapies while also rewarding innovation and risk-taking.
To address the cost associated with these new therapies, Novartis has introduced novel measures that in some cases tie payment for our medicines to the patient’s health outcome after using them. And we are laying the groundwork for more ambitious value-based approaches – such as multi-year outcome-based agreements – for future innovative products.
Novartis has been a leading voice in recommending the pharmaceutical industry shift to value-based approaches to pricing and contracting as a way to make healthcare more affordable and sustainable. We also are encouraging greater use of generics and faster development of and easier access to biosimilars (copies of large molecule biologic drugs) as important ways to hold down drug spending.
We aim to price our medicines responsibly, based on the value they deliver to patients, healthcare systems and society. In the US, we implemented guidelines for limiting average net price increases across our portfolio to the healthcare inflation rate, and we publish our US average gross and net price changes annually in our Novartis in Society US Report.