Novartis Pharmaceuticals Corporation, a US affiliate of Novartis Pharma AG, announced a valuable US discount program called the Novartis CareCard. Scheduled for launch in January 2002, the CareCard is designed to make prescriptions more affordable for low-income elderly Americans who lack drug coverage. An estimated 10 million Americans are expected to qualify for the CareCard. Novartis also issued an industry-wide call to action, encouraging other pharmaceutical companies to create programs to deliver real value to the low-income elderly.

While the elderly currently represent approximately 12.6% of the US population, 38% of all prescriptions are written for this group. An estimated one-third of community-based seniors lack drug coverage and are facing mounting prescription costs, as traditional sources of coverage (i.e., employers and HMOs) are eliminating and reducing benefits and increasingly shifting costs to patients.

"We hope the Novartis CareCard serves as a foundation for cooperation between the pharmaceutical industry and federal government to provide low-income elderly Americans the comprehensive access to medicines they need and deserve," said Paulo Costa, Chief Executive Officer, Novartis Pharmaceuticals Corporation. "We would welcome a federal government initiative which includes supplementary coverage, limiting to a reasonable amount the maximum exposure for annual drug costs among low-income elderly."

The CareCard will use an administrative infrastructure managed by an independent third party to serve as a viable foundation for other pharmaceutical companies to integrate their own programs. Pharmacy retailers will be the primary means for program enrollment and prescription delivery. Given pharmacists' expertise and frequent contact with patients, Novartis envisions their playing a critical role to enhance the effectiveness of the program.

The Novartis CareCard will be available free of charge. It will provide a discount of 25% off the wholesale list price. This should translate to patient savings of between 30-40% off of retail prices. Individuals will qualify if they are age 65 or over, with an annual income of less than 300% of the Federal Poverty Level (approximately USD 26 000 for an individual; USD 35 000 for a couple) who do not currently have alternative prescription drug coverage. This target population includes approximately 80% of Medicare enrollees who lack coverage, or about 10 million people. The program will be officially launched on 1 January 2002 and will cover all Novartis Pharmaceuticals Corporation outpatient prescription products in the US.1

The Novartis list of products in the US includes key drugs for diseases affecting the senior population, such as Diovan (valsartan) for high blood pressure, Exelon (rivastigmine tartrate) for Alzheimer's disease, Lamisil Oral (terbinafine hydrochloride tablets) for fungal infections, Lescol (fluvastatin sodium) for high cholesterol, Lotensin (benazapril hydrochloride) for high blood pressure, Lotrel (amlodipine and benazepril hydrochloride) for high blood pressure, and Miacalcin Nasal Spray (calcitonin salmon) for osteoporosis. Novartis Pharmaceuticals is also working with other Novartis AG healthcare companies to consider ways of expanding the program.