Novartis Scraps Fees of Covid-19 Drugs for Developing Countries

ZURICH, KOMPAS.com – Switzerland’s drugmaker Novartis’ Sandoz division will not charge developing countries any fees for the company’s 15 generic drugs.

The Novartis drugs will be made available in low-income countries to treat symptoms of Covid-19.

Novartis has stated that this decision will last for the duration of the coronavirus pandemic.

The company’s pledge is to provide antibiotics, steroids, and diarrhea pills to 79 countries listed on the World Bank’s low- and lower-middle-income nations.

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Novartis’ effort has garnered the attention of non-governmental organization (NGO Doctors Without Borders, that called for greater transparency on drug pricing.

The NGO additionally called the industry to follow Novartis’ “no profiteering” initiatives for new Covid-19 medicines.

Novartis has stated that its supply chain for the production of the medicines to treat symptoms of Covid-19 has not been disrupted.

The company’s Global Health Chief Operating Officer, Lutz Hegemann, told Reuters that Novartis’ program strived to help vulnerable healthcare systems in Africa, Asia, South America, and Eastern Europe from being overloaded.

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"We shouldn't underestimate the stress that Covid-19 puts particularly on fragile health systems," Hegemann said.

Hegemann added that Novartis hoped to work with health authorities, faith-based organizations, and NGOs to eliminate big mark-ups.

"We are not targeting classical commercial distribution channels, but very direct channels."

Novartis' brand-name drugs have had little application in treating the new coronavirus, while its older malaria drug hydroxychloroquine has flopped in some scientific trials against the disease.

But Sandoz generics are among medicines commonly used to treat symptoms of those hospitalized.

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The 15 drugs include several antibiotics, the steroid dexamethasone that has seen some success in treating severe Covid-19 cases, heart failure drug dobutamine, antifungal fluconazole, and lung drug salbutamol, among others.

Hegemann did not give the "no profit" cost of the drugs, compared with commercial prices.

The medicines have been around for decades and are comparatively cheap to make.

"Novartis should publish the actual 'at cost prices' for these medicines, as well as any costs of R&D and costs of production for all of their medicines," a Doctors Without Borders spokesperson said.

"Additionally, we hope that corporations like Novartis will follow similar 'no profiteering' initiatives for any new Covid-19 products." 

(Writer: John Miller | Editor: Jane Merriman, Mark Potter)

Source: https://www.reuters.com/article/us-health-coronavirus-novartis-generics/novartis-to-provide-no-profit-covid-19-drugs-to-low-income-countries-idUSKCN24H0KY