Novartis Disputes Findings of Report From US Senators Claiming More Extensive Links With Trump Lawyer

Novartis responded to a new report from three US Senators that claims the company issued a misleading public statement regarding the extent of its engagement with President Donald Trump’s private lawyer Michael Cohen. “We disagree with the report’s conclusion,” Novartis said.

Earlier this year, Novartis CEO Vasant Narasimhan apologized for the $1.2-million agreement the company made with Cohen in 2017, calling the engagement a “mistake.” At the time, the drugmaker explained that it entered into a one-year contract with Cohen for guidance “as to how the Trump administration might approach certain US healthcare policy matters, including the Affordable Care Act.”

However, Novartis noted that after meeting with Cohen, it became clear that he and his firm would be unable to provide the services anticipated in relation to US healthcare policy. The company added that as the contract could only be terminated for cause, it was obligated to make monthly payments of $100 000 until the contract expired this past February.

According to the new report, Cohen’s relationship was more extensive than Novartis previously disclosed, with emails between the lawyer and the drugmaker’s former CEO Joe Jimenez showing that the two discussed matters including drug pricing proposals. Report author Senator Ron Wyden said “what he was selling was a line of access to the Trump administration. That would be how I would characterise it.”

In response, Novartis reiterated that the company had only one meeting with Cohen on March 1 last year, while all further communications with Jimenez were initiated by the lawyer. Novartis explained that on one of these occasions, Cohen asked Jimenez for ideas on how to lower drug prices, with the former chief executive providing him with a list of well-known ideas for lowering the cost of prescription medicines that had been discussed publicly. The drugmaker added that it “never asked…Cohen to perform any services on our behalf after March 1, nor did he perform any.”

The report also suggested that Cohen pressed Novartis to invest in a company backed by Columbus Nova, an affiliate of the Renova Group, which was founded by Russian Viktor Vekselberg. A Novartis spokesman said that the drugmaker did not make the investment. According to the report, Cohen later recommended that the company invest in the start-up Yamo Pharmaceuticals, which was backed by Columbus Nova and was working on developing a treatment for autism. However, Novartis passed on the investment opportunity.

“The sweetheart deals and backdoor promises documented in this report are a snapshot of Cohen’s multimillion dollar side hustle as influencer-in-chief,” commented Ron Wyden.