Novartis Shares Plunge 3.34% Amid Global Health Funding Cuts

Novartis shares dropped 3.34% in pre-market trading on May 12, 2025, amid broader market concerns and specific challenges facing the pharmaceutical industry.

Novartis, a Swiss pharmaceutical company, has reaffirmed its commitment to producing essential medicines for diseases like malaria and leprosy, even as global health funding faces significant cuts. The company produces 28 million treatments for malaria annually, primarily sold at non-profit prices to countries and organizations, including the U.S. President's Malaria Initiative (PMI). Despite substantial reductions in international aid by the Trump administration, PMI's critical work has been partially exempted due to its life-saving potential.

Dr. Lutz Hegemann, Novartis' global health president, emphasized the company's dedication to maintaining production levels. "We won't be the bottleneck," he stated, highlighting the need for creative solutions to deliver medicines from factories to patients. This commitment extends to leprosy treatments, which Novartis donates through the World Health Organization.

Novartis is also the largest supplier of malaria drugs to the Global Fund to Fight AIDS, Tuberculosis and Malaria, which is currently facing funding challenges. Hegemann urged the pharmaceutical industry to strengthen direct cooperation with governments in traditionally aid-receiving countries, suggesting public-private partnerships as a viable solution.

By the end of 2025, Novartis plans to double its investment in malaria and neglected tropical disease research, reaching $490 million, up from the initially pledged $250 million. The company is developing new treatments for dengue fever, leishmaniasis, Chagas disease, and the first drug for neonatal malaria treatment.