Swiss pharmaceutical company Novartis AG's (NVS - Get Report) announced on Wednesday that the Food and Drug Administration had approved its CAR-T cell therapy, making it the first treatment of its kind to be authorized in the U.S.

CAR-T cell therapy is a new type of treatment for the blood cancer called acute lymphoblastic leukemia (ALL).

The treatment, Kymriah, will be available to patients up to 25 years old and the price for a one-time treatment is $475,000, Novartis stated. The pharmaceutical firm will work with the Centers for Medicare and Medicaid Services to further execute the pricing strategy.

"With the approval of Kymriah, we are once again delivering on our commitment to change the course of cancer care," said Joseph Jimenez, CEO of Novartis

Shares of Novartis were lower nearly 1% in afternoon trading on Wednesday. 

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