The Swiss pharmaceutical market is a dynamic sector, essential to the country’s healthcare system. This article provides an analysis of the main players, current challenges, expected developments and trends in the number of pharmacies over the past five years.
The major players in Swiss pharmaceuticals
Switzerland is home to several world-renowned pharmaceutical companies, including Roche and Novartis, which play a key role in the national economy. These industrial giants make a significant contribution to exports and innovation in the healthcare sector. In 2024, the pharmaceutical sector was a key driver of Swiss economic growth, with a 0.5% increase in GDP in the fourth quarter, mainly due to a 2.7% rise in production in the chemical and pharmaceutical sectors .
Issues facing the Swiss pharmaceutical market
The Swiss pharmaceutical market faces several major challenges:
- Cost pressure and increased competition : Traditional pharmacies are facing rising operating costs, not least due to rising energy and wage costs. At the same time, competition from online retailers is intensifying, forcing pharmacies to diversify their services to maintain their customer base.
- Drug shortages: In October 2024, over 1,000 drugs were out of stock in Switzerland, mainly cheap generics. This forces pharmacies to spend more time finding alternatives, increasing their workload without any additional financial compensation.
- Regulatory developments: ongoing discussions on the deregulation of online drug sales could change the competitive landscape, facilitating the entry of new players and increasing pressure on physical pharmacies.
Expected trends in the Swiss pharmaceuticals market
Several trends are set to shape the future of the Swiss pharmaceutical market:
- Growth in generics and biosimilars: In 2024, sales of generics exceeded one billion Swiss francs for the first time, recording year-on-year growth of 12.6%. Biosimilars also rose significantly, by 28.8% to 224.2 million Swiss francs. This trend is set to continue, supported by policies aimed at reducing healthcare costs.
- Increased integration of digital services: With the possible deregulation of online sales, pharmacies will have to adapt their business models by integrating more digital services to meet consumer expectations of convenience and accessibility.
- Diversification of pharmacy services: In response to competition and economic pressures, Swiss pharmacies are expanding their offer to include services such as vaccinations, screening tests and health advice, thereby strengthening their role in primary healthcare.
Changes in the number of dispensing pharmacies over the past five years
Over the past five years, the number of pharmacies in Switzerland has remained relatively stable. In 2023, there will be 1,837 pharmacies, or around 21 pharmacies per 100,000 inhabitants, which is below the European average of 32 pharmacies per 100,000 inhabitants. This stability is due in part to the strict regulations governing the opening of new pharmacies, and to the structure of the Swiss market.
However, there are disparities between cantons, particularly in terms of drug dispensing regimes. In cantons where doctors are authorized to dispense medicines, the number of pharmacies is half that of cantons where only pharmacists are authorized to dispense medicines.
In conclusion, the Swiss pharmaceutical market is in a state of flux, facing economic, regulatory and technological challenges. Retail pharmacies play a crucial role in the healthcare system, and must adapt by diversifying their services and integrating digital solutions to meet the changing needs of the population.