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Home » SWITZERLAND TO IMPLEMENT NEW DRUG PRICE CUTS
SWITZERLAND TO IMPLEMENT NEW DRUG PRICE CUTS
September 19, 2005
Switzerland's Federal Health Office (FOH) and the country's drug industry have agreed to cut drug prices by CHF250mn (US$156.68mn). The move is an attempt by the authorities to align the country's market environment more closely with European Union (EU) pricing levels.
Traditionally, medicines in Switzerland have been more expensive than elsewhere in Europe, with the country recently criticised as being a "price island." Part of the reason for this is Swiss law, which prevents the parallel import of patented drugs and keeps retail prices high.
The price cuts will apply to both generics and branded drugs with many products facing price reductions of up to 30%. The FOH claims its decision will reduce Swiss health insurance costs by roughly 1%. Local drug industry group Interpharma has stated that drugmakers operating in the country will be obliged to cover the price cuts from their own revenues.
However, industry observers have warned that pricing restrictions could facilitate a slowdown in Switzerland's drug industry. Recent data had indicated that sales grew only 2.1% in the fist half this year at manufacturer's prices compared to a rate of 4.5% for the full year 2004. Switzerland's drug market was worth US$5.4bn in 2004.
KEYWORDS Daily International Pharma Alert
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