Drug pricing
Novartis is dedicated to discovering, developing and successfully marketing innovative products to cure disease, ease suffering, and enhance the quality of life of patients. As in any other industry, we believe that pharmaceutical companies should be free to set prices for their products consistent with the value they bring to society and the market environment.
Novartis seeks to provide treatment options at fair prices which reflect the value they bring to patients and society. When determining prices, factors to consider are:
- costs required to bring a product from scientific discovery and clinical trials to regulatory approval
- manufacturing
- competitive situation in the marketplace
- additional benefits beyond and above the standard of care that the product delivers to patients, their families and societies
The overall value of innovative treatments includes:
- clinical benefits, like prevention of complications and reduction of symptoms
- improved quality of life
- economic savings in direct and indirect medical costs and productivity gains
Novartis has initiated a series of innovative pricing arrangements, where payment is directly related to the value created by its products. We believe that the interests of patients, physicians, payors and providers can be aligned in such models and create a value-based competition, resulting in better outcomes for patients.
Where we have unique, often critical medications, Novartis is committed to providing access for those most in need through access-to-medicines programs. These programs provide assistance to patients experiencing financial hardship or living in the developing world who would otherwise not be able to receive treatment.