Novartis weighs private-pay launches in Europe as MFN rules pressure government pricing

Novartis CEO Vas Narasimhan said the company is exploring the option of introducing new medicines directly to private or self‑pay patients in Europe.

The discussion is driven by the European Union's most‑favored‑nation (MFN) pricing requirement, which obliges member states to match the lowest price offered elsewhere, limiting revenue potential for innovative drugs.

By targeting private markets, Novartis hopes to preserve pricing flexibility while still making products available, although such a strategy could attract regulatory scrutiny and affect relationships with public health systems.

Analysts view the move as a sign of growing tension between pharma pricing models and government cost‑containment policies, potentially shaping launch strategies for other manufacturers across the continent.