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The price dilemma over a $16,000 drug | Fox Business

If the drug does pan out with regulators, Novartis would have to drastically cut its price to make it competitive with other cardiovascular drugs. That would mean jettisoning a small, but reliable, revenue stream on an uncertain bet that the drug could become a top seller as a cardiovascular medicine.

“They’ve got a bit of a puzzle on their hands,” said Bernard Munos, a senior fellow at nonprofit Faster Cures who previously worked at Eli Lilly & Co.

A Novartis spokesman said it is too early to discuss its pricing strategy. “We will continue to fully analyze the data, plan to discuss these with regulatory agencies and determine how it would fit into clinical practice,” he said.

Rare-disease, or orphan, drugs can command sky-high prices because they are typically the only treatment option available. The small number of patients also limits the overall bill to the health-care system.

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The price dilemma over a $16,000 drug | Fox Business.