Novartis, Roche Near US Drug Price Deal In Easing of Swiss Trade Tensions

The White House is set to announce drug pricing deals with pharmaceutical heavyweights Novartis AG and Roche Holding AG as soon as Friday, according to people familiar with the situation, further easing trade tensions with Switzerland after a standoff over tariffs.

Other drugmakers could also be included in the announcement, and the details remain in flux, the people said. Pfizer Inc., AstraZeneca Plc and other companies have struck deals with the Trump administration in recent months, agreeing to lower prices in certain instances in return for relief from tariffs.

Switzerland last month reached a preliminary trade agreement to lower tariffs on many local goods, including watches, to 15% from 39%. The Alpine country was hit by the highest levy the Trump administration imposed on any developed nation. Like gold and semiconductors, pharmaceuticals were exempt from the tariffs, but Trump had threatened potential future duties.

President Donald Trump sent letters to 17 pharmaceutical companies over the summer demanding that they cut costs for a US government insurance program, agree to make their medicines available through a Trump-branded direct-to-consumer platform and bring future prices in line with those charged in foreign countries. In exchange, the companies were given a multiyear reprieve from threatened tariffs and some potential regulatory action.

Most of the companies that received Trump’s letters still haven’t announced deals, including AbbVie Inc., Boehringer Ingelheim, Bristol-Myers Squibb Co., Gilead Sciences Inc., Amgen Inc., Johnson & Johnson, GSK Plc, Merck & Co., Regeneron Pharmaceuticals Inc. and Sanofi.

Novartis, Roche’s Genentech unit and the White House declined to comment on the specifics.

Novartis confirmed it is in discussions with the administration and is committed to “finding constructive solutions that lower costs for Americans and address the price disparities between the US and other high-income countries.” A Genentech spokesperson said the company is committed to working with the administration and supports its goal of lowering US drug costs, while encouraging other countries to “reward biopharmaceutical innovation."