Novartis Strikes Deal with US Government to Lower Drug Prices, Joining AbbVie and Roche in Meeting Administration's MFN Demands
Summary
Global pharmaceutical giant Novartis announced on December 19, 2025, that it reached a voluntary agreement with the US government to lower the price of innovative medicines in the US. This move aligns with the Trump Administration's drug pricing priorities, which include providing most-favored-nation (MFN) pricing for the Medicaid program and guaranteeing that new drugs are not launched at prices exceeding those in other high-income nations. The agreement, which follows similar expected deals with peers like AbbVie and Roche, helped calm initial investor concerns regarding tighter price controls across the sector.
Novartis reached a voluntary deal with the US government on drug pricing. The agreement mandates most-favored-nation pricing for the Medicaid program. The terms eased investor fears regarding tighter mandatory price controls.
Key Takeaways
- The deal was announced on December 19, 2025, following months of negotiations.
- Novartis committed to MFN pricing for Medicaid and international price parity.
- The agreement supports continued US investment in R&D and manufacturing.
Sentiment: Bullish
The voluntary nature of the deals calmed initial market fears of severe, mandatory government price caps.
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