SL Insight Newsletter #16

Novartis CEO Vas Narasimhan describes MFN as a "seismic shift" in an interview: The greatest impact will be on future launches, because a US price anchor effectively requires that eight countries in a reference basket be able to launch at "compatible" net prices. At the same time, Novartis is pushing ahead with investments in the US (including a committed USD 23 billion) and China, and speaks of a "balkanization" of production.

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Impact on Switzerland?

Under the MFN deal, Novartis has committed to offering the same price in the US as in the second-lowest reference country. Narasimhan therefore assumes that launches may be delayed or not take place at all in individual countries if the price level is too low. In addition, production and R&D would become more regionalized (US/China), which would make Europe less attractive.

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Click here for the press release