Novartis’ Entresto, Medicare Price Negotiation And The Impact Of ‘Bona Fide’ Competition

Entresto may be subject to a negotiated price in Medicare Part D for one year before it will be excused because of generic competition under the government's current approach to implementing the program, Novartis predicted. The program could also envelop Kisqali in a few years, but the firm is not making adjustments on Leqvio and pelacarsen in response to the IRA.

Medicare 'Bona Fide' Marketing Standard Oversteps The Law, Pharma Says • Source: Shutterstock

Novartis AG’s blockbuster heart failure drug Entresto is among a handful of products now undergoing Medicare price negotiation that are likely to test the Centers for Medicare and Medicaid Services’ policy around what happens if generic or biosimilar competition enters the market before the negotiated price is implemented in 2026.

Key Takeaways
  • Nearly half the drugs currently undergoing the Medicare price negotiation process, including Entresto, will face competition from generics or biosimilars before the negotiated prices go into effect in 2026, heightening interest in the government’s approach to dealing with such situations.

  • Novartis’ breast cancer drug Kisqali may be a candidate for Medicare price negotiation at the end of this decade

The issue came up during Novartis’ fourth quarter earnings call on 31 January

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