Novartis, the Swiss pharma giant, said it would make the United States its top geographic priority, even after laws were passed to rein in drug prices in the world’s largest pharmaceutical market. On Thursday, the company stated that it would adopt a US-first mindset, which would increase the share of US patients in clinical trials, build capability and give US staff and executives more say and better career opportunities within the organisation.

The company aspires to organically build its US business to become a top-five player in the US by 2027. Notably, it ranked 10th in the US market last year. In August, US President Joe Biden signed the Inflation Reduction Act, authorising the government to negotiate prices on some prescription drugs and control costs for state health programme Medicare. In 2024, the government may start negotiating what it would pay for ten drugs, among those accounting for the highest Medicare spending.

Regarding inflation, Novartis’ CEO Vasant Narasimhan said that the company believes it’s manageable, and there are no changes for its guidance regarding managing through the inflation caps. The company also announced a strategy based on eight big drug brands as it reshapes itself following the decision to spin off Sandoz, its underperforming generics business.

Its shares were down 0.9 per cent at 0741 GMT, slightly better than the 1 per cent drop in the STOXX Europe 600 Health Care index. Novartis said its Cosentyx, Entresto, Pluvicto, Zolgensma, Kisqali, Kesimpta, Leqvio, and Scemblix therapies all held multibillion-dollar peak sales potential.

Founded by Johann Rudolf and Alexander Clavel in 1996, Novartis AG is one of the largest pharmaceutical companies in the world. Headquartered in Basel, it manufactures the drugs carbamazepine (Tegretol), valsartan (Diovan), imatinib mesylate (Gleevec/Glivec), and clozapine (Clozaril).

CEO Narasimhan also confirmed Novartis’ previously stated financial targets of 4 per cent annual sales growth through 2027 and a core operating income margin of at least 40 per cent.