Swiss Pharma market shrank for first time in 2010

Domestic sales of pharmaceutical in Switzerland fell for the first time on record last year. According to the consultancy IMS Health, turnover fell by 1.3% to 4.82 billion Swiss francs ($5.1 billion) based on ex-factory prices, following a 3.4% rise the previous year. Sales of generic drugs grew by 4% to 468 million francs. Overall sales of drugs covered by the state insurance system edged up 0.1% to 3.8 billion francs.

Expiring patents on top-selling drugs and state-mandated price declines are responsible for the trend. Thomas Binder, executive director of the Swiss pharma association vips, noted that there have been 7,000 price cuts since 2006, including 2,900 last year. Had 2005 prices continued to apply, the Swiss would have spent another 1.9 billion francs on drugs. The pharma industry “has made a substantial contribution” to the savings made by the Swiss health system over the past five years, he said.

More price cuts on generics coming