Novartis offers reduction for its US customers

Americans aged 65 or with a small income will soon be able to benefit from cheaper drugs. Novartis

The Swiss pharmaceutical giant, Novartis, is preparing to launch a membership card, entitling American pensioners to a reduction on its drugs.

Novartis’ CareCard programme comes in response to criticism sustained by the pharmaceutical industry in the United States, after it pressured the US congress to drop a reform plan aimed at cutting the cost of medicine.

Other companies, including GlaxoSmithKline and Merck-Medco, have proposed similar membership cards to revive their image.

However, reform projects have resurfaced since the Democrats took control of the US senate. The reforms would give the government greater control over the cost of drugs, which have increased by 15 per cent annually.

By proposing membership cards, pharmaceutical companies hope to offer an alternative to reforms.

“We want to reduce the void between rich and poor Americans,” said the head of Novartis, Daniel Vasella.

The American Secretary of Health and Human Services, Tommy Thompson, reacted positively to the CareCard.

“Novartis has proposed an innovative solution to make drugs more accessible to elderly people who cannot afford them,” Thompson said. “However, the Bush administration and congress will have to find a more global solution with the private sector.”

Sceptic associations

Consumer associations have remained sceptical about the CareCard, which is to be launched in January 2002. One consumer group, Families USA, said the card would be largely ineffective.

“It is likely that only a small minority of elderly people will ask for the card,” the organisation said.

The association, which used a study published in 2000, pointed out that none of Novartis’ drugs were on a list of the 50 most popular pharmaceutical products used by elderly people in the US – except for Miacalcin, which is used to treat osteoporosis.

Novartis’ CareCard is aimed at Americans aged 65 and over. It is only addressed to single persons and couples, whose annual income is less than $26,000 (SFr42,600) and $35,000 (SFr57,400).

Card owners will benefit from a 25 per cent reduction on prescription drugs produced by Novartis. The Swiss company says savings could amount to 40 per cent for its card owners.

Marie-Christine Bonzon and Jeff Nottage