<div id="readability-page-1"><p>Novartis AG (NVS) released its first-quarter earnings this morning and raised fresh concerns about U.S. drug pricing policy, with CEO Vas Narasimhan warning that the impact could soon hit both companies and patients. Speaking to <em>CNBC</em>, Narasimhan said the &#34;reality of MFN is going to set in in the next 18 months,&#34; pointing to a shift that could reshape how drugs are priced across global markets.</p><h3>Claim 55% Off TipRanks</h3><ul><li>Unlock  hedge fund-level data  and  powerful investing tools  for smarter, sharper decisions  </li><li> Discover top-performing stock ideas and upgrade to a portfolio of market leaders with  Smart Investor Picks  </li></ul> <p>The most favored nation policy ties U.S. drug prices to those in other rich markets. While that may lower costs in the U.S., Narasimhan made clear the trade-off could fall on other regions. He said Novartis is pushing Europe and Japan to rethink how they reward new drugs. If not, he warned that &#34;novel medicines might see delayed entry&#34; and patient access could suffer.</p> <p>This view aligns with peers like Roche (RHHBY) and AstraZeneca (AZN), which have also flagged Europe's pricing system as a risk to future drug access. Narasimhan added that governments are aware, but not acting fast enough. &#34;There's awareness, but I still think there's not a realization of the level of impact that's coming,&#34; he said.</p> <p>Importantly, the near-term hit to Novartis is still limited. The CEO noted that MFN currently affects about 5% to 10% of Medicaid-linked sales. Still, he sees the policy as locked in, adding, &#34;I don't see it disappearing in the U.S.&#34; That sets up a period where drugmakers may need to make &#34;difficult trade-offs&#34; on where and when to launch new treatments.</p> <p>Meanwhile, NVS shares are down nearly 2% in pre-market trading, after the company posted its Q1 earnings results.</p> </div>

<p>Novartis CEO Vas Narasimhan expressed concerns over the U.S. drug pricing policy, particularly the most favored nation (MFN) policy, which could impact global drug access. He warned that while U.S. prices may decrease, other regions might face delayed access to new medicines. Narasimhan emphasized the need for Europe and Japan to reconsider their drug pricing strategies. Despite a limited immediate impact on Novartis, he believes the MFN policy is unlikely to change, leading to potential challenges for drug launches. Novartis shares fell nearly 2% following the Q1 earnings report.</p>

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Novartis (NVS) CEO Warns Trump Drug Pricing Policy Could Hit Global Access as Earnings Slip