Finance
Novartis to keep making malaria drugs if orders dry up amid aid cuts
Published by Global Banking & Finance Review®
Posted on May 12, 2025
3 min readLast updated: January 23, 2026
Global Banking & Finance Review®
Company
Published by Global Banking & Finance Review®
Posted on May 12, 2025
3 min readLast updated: January 23, 2026
Novartis commits to producing malaria drugs despite funding cuts, urging pharmaceutical collaboration with low-income countries.
By Jennifer Rigby
LONDON (Reuters) -Swiss drugmaker Novartis will keep making medicines for malaria and leprosy, even if it does not get orders as normal amid the global health funding crunch, its president of global health told Reuters in an interview.
The company makes 28 million malaria treatment courses every year, and sells almost all of them a not-for-profit price to countries and groups including the President's Malaria Initiative (PMI), a U.S.-government funded initiative that still has an unclear future given President Donald President Trump's vast international aid cuts, although it did receive an exemption for some work earlier this year because of its lifesaving potential.
"We are not going to be the bottleneck," said Dr Lutz Hegemann in an interview. "We are not going to produce based on demand, because we know that these medicines are needed, and we need to be creative in finding ways to get them from the factory to patients."
Earlier this year, an order was cancelled by a contractor for PMI when it got a stop-work order from the U.S. government, Hegemann said. But then within a month it got an exception and asked for work to begin again.
"You cannot do that essentially in real-time. We remain committed to our volume," said Hegemann, adding that this also applied for leprosy, which it donates in smaller quantities through the World Health Organization.
The Global Fund to Fight AIDS, TB and Malaria is the biggest buyer of Novartis' antimalarials. It has not yet faced cuts but is fundraising now for its future work in a difficult climate.
Speaking in London, Hegemann also urged the pharmaceutical sector to step up while governments, including the U.S., United Kingdom and France, pull back from aid funding, and particularly work more directly with governments that have traditionally been recipients of aid.
"I think it would be a missed opportunity if we just tried to essentially plug the gap that donor country funding has created, and I think we need to move beyond that," he said, pointing to public-private partnerships between pharmaceutical companies and low and middle-income countries as a model.
Hegemann also said Novartis is set to spend almost double what it pledged to by the end of 2025 on malaria and neglected tropical diseases research and development: $490m rather than its pledged $250m. Products in development include a dengue antiviral, new treatments for leishmaniasis and Chagas disease, and the first malaria treatment for newborn babies.
(Reporting by Jennifer Rigby; editing by David Evans)
The article discusses Novartis' commitment to continue producing malaria drugs despite potential reductions in global health funding.
Novartis plans to maintain drug production and urges the pharmaceutical sector to collaborate with low-income countries.
Novartis plans to invest $490 million in malaria and neglected tropical diseases research by 2025.
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