Novartis Responds To Low Interest Rates By Halting Deliveries To Wholesalers

BMI View: In the short term, the halt in the delivery of drugs to German medicine wholesalers while Novartis negotiates discounts on drugs (fuelled by low interest rates and wholesalers' access to cheaper credit), may affect the drugmaker's revenue stream in Germany. However as a result of the price pressures placed on drugmakers in Germany, in the long-term this will act as a protectionist measure, supporting Novartis's revenue stream in a market that accounts for a large proportion of the cost conscious European drug market.

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