Novartis, which is a leading global innovative medicines company, went ahead and announced on December 19, 2025, that it has reached an agreement along with the US government that aims to lower innovative medicines price in the US and also support the ongoing US investment when it comes to manufacturing, research, and development.
Apparently, Novartis has voluntarily gone on to agree to take actions that are aimed at meeting the drug pricing priorities of the US Administration. These include –
- Going ahead with future medicines with comparable prices throughout high-income countries.
- Building direct-to-patient platforms when it comes to Mayzent®, Rydapt®, and Tabrecta®. These new platforms are going to be accessible via TrumpRx.
- Applying to participate in the GENEROUS – GENErating cost Reductions fOr U.S. Medicaid Model, which is aimed at further elevating the level of access to medicines in the US Medicaid program.
- Supporting endeavors that address the global imbalance in investment within pharmaceutical innovation.
The CEO of Novartis, Van Narasimhan, says that this agreement continues their long-term collaboration with the US government in order to advance development and manufacturing when it comes to breakthrough treatments for patients within the United States. He adds that they are very much committed to working with governments across the world so as to ensure innovation is aptly valued and that their medicines go on to reach the patients who actually require them most.
Apart from the step to lower innovative medicines price in the US, earlier in 2025, Novartis went on to commit to investing $23 billion in terms of expanding its US R&D as well as manufacturing infrastructure over the next 5 years. Since announcing this investment in April 2025, the company:
– Has announced a new $1.1 billion biomedical research hub in San Diego, CA.
– Has broken ground on a new flagship manufacturing hub based out of North Carolina, including three new facilities within the Raleigh/Durham area. The hub is going to help with end-to-end manufacturing capabilities in order to produce medicines throughout the technology platforms of the company.
– Has come up with a new radioligand therapy –Â RLT manufacturing facility based out of Carlsbad, CA, thereby helping with coast-to-coast manufacturing when it comes to RLTs.
– Has gone on to advance its plans to build new RLT manufacturing units based in Florida and Texas.
It is worth noting that in recognition of this investment, Novartis looks forward to receiving three years of tariff relief.
