Switzerland Pharmaceuticals and Healthcare Report Q3 2009

In 2008, Switzerland's drug market expenditure reached a value of CHF5.9bn (US$5.4bn). The value of the country's pharmaceutical market is forecast to reach CHF6.6bn (US$5.6bn) by 2013, representing a compound annual growth rate (CAGR) of 2.35% in local currency terms.

In BMI's Business Environment Rankings for Q309, Switzerland has regained pole position in the Western European matrix, moving back up from second. Its score for Q309 is a strong 69.1, comfortably above the regional average of 64.7. Moreover, globally, Switzerland remains one of the top five pharmaceutical markets in which to do business. However, BMI believes that in the future Switzerland may fall down the world rankings, as large high-growth emerging markets - such as Brazil and China - become more alluring to multinational drugmakers.

In March 2009, in response to the Switzerland Council of State's call for a reduction in the price of medicines in the country, research-based Swiss pharmaceutical companies requested that the regulations surrounding the prices of drugs be evaluated. Interpharma, the association of pharmaceutical companies in Switzerland, asked the Federal Office of Public Health, the health insurance industry and the pharmaceutical industry to come together to create a sustainable price regulation system.

The council asked for an increase in the number of countries with which Switzerland compares its medicine prices. The basket currently consists of Germany, Denmark, the UK and the Netherlands, to which the agency suggested adding France, Italy and Austria. The agency believed there should be a more thorough evaluation of pharmaceutical companies and their pricing of medicines, and that more should be done to encourage pricing competition in Switzerland. These measures could save an estimated CHF360mn per year, the association said.

Additionally, in March 2009, Galencia, Switzerland's largest drug wholesaler, announced its decision to acquire Sun Store, the second largest pharmacy chain in the country. This means that Galencia (part owned by Alliance Boots), will own one in every six of the 1,700 pharmacies in Switzerland. Details of the cost of the transaction were not revealed and it is expected the deal will be completed in July 2009. In 2008, Galencia acquired MediService, one of the leading mail-order pharmacies in Switzerland.

According to Swissmedic, the Swiss medicines agency, the number of illegal medicines coming into Switzerland rose by 75% in 2008 compared to the previous year. More than half the medicines seized originated from Western Europe and Asia. Ruth Mosimann, the agency's head of market monitoring of illegal medicines, said that the rise can be partially attributed to the global increase in the number of internet pharmacies and the illicit advertising of drugs.