STAT Plus: Novartis sells bonds tied to expanding access to medicines in poor countries
In a first-of-its-kind move by a large drug maker, Novartis (NVS) raised approximately $2.1 billion last week by selling bonds that are tied directly to its progress in making medicines accessible in certain low- and middle-income countries.
Specifically, the stated goal is to expand the number of patients who receive its brand-name medicines by at least 200% by 2025, as well as programs that market medicines to combat leprosy, malaria, Chagas, and sickle cell disease by at least 50% over the same period. If the company fails to meet those expanded access goals, however, investors will receive higher interest payments.
