A collaborative open letter from Novartis and the Eurasia Group has called on world governments to address the growing “G-Zero” landscape, where a lack of global leadership is driving nations toward unilateral industrial policies and geopolitical fragmentation.
Navigating a restrictive trade environment The communication highlights significant shifts in global trade, particularly influenced by recent U.S. executive actions in 2025:
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Pricing mandates: New requirements mandate that domestic drug prices in the U.S. must not exceed the lowest global benchmarks.
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Trade barriers: The imposition of 100% tariffs on patented pharmaceuticals unless companies initiate domestic manufacturing projects.
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Competitive risks: The authors argue that defensive measures, such as budget caps and external reference pricing, are widening productivity gaps and deterring innovation.
Proposed pillars for scientific competitiveness To secure long-term economic and health advantages, the letter outlines a strategic pivot for policymakers:
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Value-based recognition: Removing obstacles that prevent innovative medicines from being priced according to their full clinical and societal value at the point of approval.
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GDP-linked investment: Increasing national expenditure on innovative therapies as a dedicated share of the Gross Domestic Product.
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Regulatory streamlining: Mitigating top-down practices that devalue pharmaceutical advancements.
The report concludes that countries successfully integrating life sciences into their core economic strategies moving beyond using the sector as a bargaining chip—will be better positioned to navigate the fragmented global order of 2026 and beyond
Source: https://www.pharmexec.com/view/novartis-calls-for-global-governments-address-global-trade-policy