Novartis CEO Vas Narasimhan highlighted in a CNBC interview that the company’s primary focus should be lowering patient out-of-pocket costs rather than cutting list or net drug prices. He noted that, in the U.S., average annual out-of-pocket expenses for chronic therapy patients can exceed $1,200, and Novartis is piloting co-pay assistance programs across 15 states to drive that figure down by up to 30%. Narasimhan argued that shifting industry dialogue toward direct patient costs will better reflect affordability and access, and he cited internal data showing a 12% increase in prescription adherence after implementing similar assistance initiatives in Europe.

Speaking from Davos, Narasimhan expressed confidence that Novartis is shielded from any additional U.S. tariffs on European goods. He pointed to the company’s extensive U.S. manufacturing footprint—seven facilities producing 40% of its American supply—as well as current inventory levels sufficient to cover three months of demand. Furthermore, he referenced a standing agreement with the previous U.S. administration that exempts key pharmaceutical imports, safeguarding the company’s margins and ensuring continuity of supply chains without the need to relocate production or pass costs onto patients.

At the World Economic Forum, Narasimhan warned that Europe risks falling into a pharmaceutical innovation gap unless public and private sectors ramp up R&D spending. He cited that U.S. biopharma investment averages 23% of revenue, compared with Europe’s 17%, and pointed to a 5% year-over-year decline in new drug approvals originating from EU-based labs. Novartis plans to increase its own European R&D budget by 8% next year, allocating an additional €300 million to early-stage research in oncology and gene therapies, and is urging policymakers to match such commitments to sustain long-term competitiveness.