Novartis commits to hold Swiss drug prices

Switzerland-based drug major Novartis has said it will not submit anynew applications for increases in the prices of its reimbursable medicines for its domestic market during 2002 and 2003. This initiative, according to M2 Presswire, is in response to the premium increases of 10% recently announced by Swiss health insurance companies, and the Federal Office for Social Security, the BSV, has been advised of the firm's decision.

Novartis says that by voluntarily freezing the prices of its reimbursable medicines over the next two years, it is making an effort to curb increasing health care costs. It also hopes that, during this period, savings can be achieved with regard to other cost drivers that are responsible for the bulk of health insurers' spending.

Drugs account for only about 12% of total Swiss health care costs, but make up almost 20% of health insurance companies' outlays, Novartis notes, because not all of the health care expenses are covered by them.