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Novartis: threatens withdraw medication europe:
Pharmaceutical industry
Novartis threatens to withdraw medication in Europe
Pressures on prices. Consequently, withdrawal threats shake European and Swiss pharmaceutical markets. Nevertheless, The Basel boss claims more for innovation.
The boss of Novartis, Vas Narasimhan, during the General Assembly in March.
Michael Trost/ Tamedia
- European governments are under increased pressure from the pharmaceutical industry, which requires higher prices for drugs.
- Novartis boss, Vas Narasimhan, threatens to withdraw certain drugs in the absence of price reform.
- The United States plans to align the price of its drugs with novartis: threatens withdraw medication europe those practiced in Europe.
- Despite the prices discussions, Switzerland still displays expenditure on medication per capita above the European average.
The boss of the Basel pharmaceutical giant Novartis Branded the threat in the conflict on the price of medication. Similarly, “We are trying to avoid the situations in which we must completely withdraw a product from the market. Meanwhile, ” said Vasant Narasimhan last Thursday when presenting the half -yearly results. Furthermore, “But I think it will happen more and more often, unless Europe reform its systems.”
The American declaration is part of a long -standing conflict, which opposes the pharmaceutical sector to European governments, including Switzerland. Meanwhile, Companies judge that the prices of their products are too low in Europe. In addition, going Narasimhan formula as follows: “We are convinced that Europe must better reward innovative drugs.”
The case is complex. Moreover, If pharmaceutical groups such as Novartis. Therefore, Roche can embody in the eyes of anti -capitalists a frantic quest for profit, their environment is essentially regulated. Nevertheless, This concerns not only the authorization of drugs, but also, and above all, the determination of prices. Nevertheless, Unlike cars or chewing gums, manufacturers do not freely set their prices. Similarly, These are the subject of negotiations with the local authorities. However, taking into account various elements such as the price of comparable products, competition, development costs or even therapeutic efficiency.
Novartis: threatens withdraw medication europe
Trump is targeting the lowest rates in Europe
The United States is an exception of weight. In addition, In the absence of significant government regulation on drug prices, they remain higher than in the rest of the world. novartis: threatens withdraw medication europe Nevertheless, This market represents for pharmaceutical giants both a lucrative Eldorado. a point of vulnerability: Roche and Novartis achieve around half of their respective turnover. As companies do not detail the benefits by geographic areas, the United States is undoubtedly an even more important market.
President Donald Trump announced that he wanted to do Lower prices for medication in the United States. An ambition that its predecessors. Republicans as Democrats, continued without success, as the American system is complex and strewn with political pitfalls. During the first seven months of his mandate. Trump managed to lift several blockages, with methods and objectives, however often disputed.
Trump is considering a system that would align the prices of American drugs. with those of the least expensive Western country. Since this announcement, several pharmaceutical companies have been pressure on European novartis: threatens withdraw medication europe governments to obtain an increase in their prices.
An example is a letter published in April in the “Financial Times” by Vasant Narasimhan. Paul Hudson, leader of the French group Sanofi. “The American pharmaceutical market is twice as large as that of Europe, while the population is lower,” they write. “In the current global context. the model consisting in producing in Europe to export to the United States is no longer viable. Europe must strengthen its domestic market. “
The American president, Donald Trump, here, at the signing of a new law on cryptocurrencies last Friday.
It is avan Vucci/Mamedi
Companies are pursuing at least two objectives: avoiding too much prices in the United States. maintaining high prices in Europe if Donald Trump’s reform is adopted; And to alleviate the financial consequences of a possible decline in their income across the Atlantic.
In addition. some companies hope that the new American administration becomes aware of the extent of the pressures they exert on European governments. During his speaking last Thursday, Vaseant Narasimhan was careful not to criticize Donald Trump’s policy. It remains to be seen whether the American president will decide to impose customs duties on imports of pharmaceutical products. and if novartis: threatens withdraw medication europe necessary, in what proportion.
Last week, Trump announced the upcoming taxation of customs duties on imports of pharmaceutical products. However, the real scope of this declaration remains difficult to assess. At the same time. Trump negotiators have already agreed with the Federal Council several weeks ago, to save Swiss pharmaceutical exports from these customs duties. However, the president has not yet signed this declaration of intention.
Novartis: threatens withdraw medication europe
Roche is acting after the threat of Novartis
In this tense climate. the boss of one of the largest pharmaceutical groups in the world now threatens to deprive patients with medication, because the price does not satisfy his business. “It is above all a negotiation tactic,” said Michael Kunz, pharmaceutical analyst at the Cantonal Bank of Lucerne. “The sudden removal of a market medication is novartis: threatens withdraw medication europe actually the last solution envisaged.”
However, the current situation seems to promote such climbing. Last week. we revealed that Roche, the other Basel pharmaceutical giant, had withdrawn from the Swiss market the Lunsumio anticancer drug. In question: a disagreement between Roche and the Federal Office for Public Health (OFSP) concerning the reimbursement conditions. If specialists establish an obvious link with American developments. Roche challenges this interpretation and recalls his previous efforts in favor of reforms in Switzerland.
“With the prices charged in Europe, companies cannot permanently finance their research and development,” explains pharmaceutical analyst Michael Kunz. “Currently, it is American patients who assume an excessively high share of these costs. Trump is understandable want to change this. ”
The OFSP. Novartis in open conflict
But does that justify novartis: threatens withdraw medication europe that laboratories withdraw essential drugs from the European market, thus depriving patients? The spokesperson for Novartis, asked several times, did not wish to comment on the words of her director. It remains to be seen whether specific treatments are targeted.
According to the spokesperson. pricing negotiations in Europe are so long and unsatisfactory in the eyes of manufacturers that the marketing of many drugs is delayed. Switzerland would be particularly badly off: “We note that Switzerland visibly accuses a delay compared to Europe with regard to reimbursement. that is to say prices, and the availability of new drugs.” The price requirements of the OFSP are sometimes “significantly lower than that of other European countries”.
The OFSP says the opposite: “The tariff requirements of the pharmaceutical industry are constantly increasing. Prices and costs of medicines in Switzerland are much novartis: threatens withdraw medication europe higher than average. […] A recent report published in Sweden shows that Switzerland has the highest costs per capita in medication […]. ” The office sees it as a determining factor in the increase in health insurance premiums.
Who is right? Both, but they don’t talk about the same thing. Novartis refers to expenditure in proportion to the gross domestic product, while the OFSP highlights the absolute costs.
The real question is whether the Swiss pay more cher their drugs to indirectly finance other countries. due to their high purchasing power. This question becomes all the more important since the Americans now want to abandon this role.
Translated from German by Elisa Andrade.
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Novartis: threatens withdraw medication europe
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