By Donato Paolo Mancini and Brian Blackstone 

Novartis AG won't increase its U.S. drug prices for the rest of 2018, the Switzerland-based drugmaker said Wednesday, days after Pfizer Inc. took a similar step following criticism from President Donald Trump.

In an interview, Novartis Chief Executive Vas Narasimhan said the company would evaluate its strategy for 2019 when it has more clarity on the pricing environment.

"Let's see how this unfolds for the rest of this year," he said.

Last week, Pfizer said it would defer some recent drug-price increases, reversing course after Mr. Trump criticized the company for its plans to raise the prices of more than 40 drugs.

Novartis disclosed last month that it was reeling back price increases that had previously been slated for the third quarter, a company spokesman said.

Mr. Narasimhan didn't speak directly with Mr. Trump about pricing, the company said, adding it had been in contact with the U.S. Department of Health and Human Services in the context of the administration's blueprint to curb drug prices that was unveiled in May.

The comments on pricing came as Novartis reported a rise in second-quarter revenue and profit. Novartis also backed its outlook for 2018 and reiterated that it considered the Michael Cohen affair over, following weeks of turmoil in which the company has been scrutinized over its ties to Mr. Trump's former personal attorney.

The $1.2 million consulting deal between Novartis and Mr. Cohen's company, Essential Consultants LLC, came to light in May. At the time, the company said the deal had been a mistake.

"I view the Cohen issue as closed," Mr. Narasimhan said Wednesday.

Novartis said net sales grew to $13.2 billion from $12.2 billion in the second quarter, mainly underpinned by drugs Cosentyx and Entresto. Its oncology division posted growth throughout the year after losing exclusivity for its blockbuster drug Gleevec/Glivec.

It said net profit rose to $7.8 billion from $2 billion, benefiting from a $5.7 billion net gain from the sale of its stake in a consumer health care joint-venture with GlaxoSmithKline PLC. Novartis said it expected group net sales to grow at a low- to mid-single digit rate this year

Back in May, Novartis said it hired Mr. Cohen for insight into how "the Trump administration might approach U.S. health-care policy matters," but that executives realized from their first meeting with him in March 2017 that he wouldn't be helpful and stopped engaging with him.

A report by four Democratic Senators last Friday disputed much of the company's account of the interaction, saying Novartis had played down its ties to Mr. Cohen and that contact lasted six months longer than initially claimed.

Mr. Narasimhan said Wednesday he hasn't received any further requests from political or legal authorities for additional information on the matter.

Last Friday, Novartis said it disagreed with the Senate report's conclusion and repeated that entering the agreement with Mr. Cohen had been an error.

The scrutiny comes as Novartis works to refocus its operations, planning to spin off its Alcon eye-care unit, which analysts estimate could be valued at more than $20 billion. Earlier this month, the company also said it would abandon antiviral and antibiotic research.

Write to Brian Blackstone at brian.blackstone@wsj.com

 

(END) Dow Jones Newswires

July 18, 2018 11:05 ET (15:05 GMT)

Copyright (c) 2018 Dow Jones & Company, Inc.
Novartis (NYSE:NVS)
Historical Stock Chart
From Feb 2024 to Mar 2024 Click Here for more Novartis Charts.
Novartis (NYSE:NVS)
Historical Stock Chart
From Mar 2023 to Mar 2024 Click Here for more Novartis Charts.