Novartis AG announced disappointing sales for a key psoriasis drug and the looming retirement of its respected finance chief, which overshadowed a modest outlook raise. Novartis CEO Vasant Narasimham speaks with Scarlet Fu on these topics and the impact of tariffs.

Novartis ( NYSE: NVS) CEO Vas Narasimhan said the company has built up its U.S. inventories to help mitigate the impact of tariffs this year. During a CNBC interview, Narasimhan emphasized the company’s strong fundamentals, pointing to 10 consecutive quarters of raised guidance and robust financial performance.

In its Q2 earnings call Thursday, Novartis said it is moving quickly to reshore its drug manufacturing operations, but CEO Vas Narasimhan told reporters that for most medicines, it typically takes three to four years to completely relocate production.

President Donald Trump's proposed tariffs on pharmaceuticals could lead to higher prices, higher insurance premiums, and even drug shortages, experts say.

President Trump said he was likely to impose tariffs on pharmaceuticals as soon as the end of the month, starting with a "low tariff"