HEALTH PANORAMA 2021 The most important facts and figures on Switzerland's healthcare and pharma landscape - Interpharma
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HEALTH
PANORAMA 2021
The most important facts and figures
on Switzerland’s healthcare and
pharma landscapeEDITORʼS NOTICE FOREWORD
40th edition, published by For a fact-based dialogue
Interpharma
Association of research-based pharmaceutical
companies in Switzerland Dear Reader
Petersgraben 35 Health is a valuable good – the present situation makes us more
P.O. Box aware of this than ever. To successfully meet the challenges,
4009 Basel
Phone: +41 (0)61 264 34 00
we need knowledge, a sharing of ideas and an open, fact-based
E-mail: info@interpharma.ch dialogue: where does Switzerland stand today in terms of life
expectancy? How are healthcare costs developing in our coun-
The content of the brochure can also be found on the try? How many medicines make the long journey from research
website of Interpharma at www.interpharma.ch.
Readers are free to download and use the charts in
lab to the patient? Which country files the most patents?
their latest version at www.datacenter.interpharma.ch
for their own purposes provided the sources are properly The statistics published by Interpharma provide answers to
quoted. these and many other questions. Seventy-five charts offer a
compact overview of the most important facts and figures on
Interpharma editorial team: the healthcare system, the pharma market and Switzerland’s
1
Miriam Flury, Simon Fry, Michael Schoy, Martin Schüller position as a pharma hub. A further valuable contribution to
help strengthen the dialogue is provided by our new data centre.
Deutschsprachiges Original verfügbar
Here you will also find important facts and figures online:
Disponible en traduction française www.datacenter.interpharma.ch
© Interpharma, 2021, Basel
Printing permitted with acknowledgement of source At www.interpharma.ch, under “Publications”, you can order fur-
ther copies of this brochure and other Interpharma publications
or download them in PDF format. With our Health Panorama
2021 we are also seeking to contribute to a fact-based and
constructive discussion around the healthcare system – with
the focus on patients.
We wish you an interesting and informative read.
Dr. René BuholzerTABLE OF CONTENTS Interpharma | Health Panorama 2021
Swiss healthcare system 4 Focus on the patient 44
Life expectancy in Switzerland 6 Growth of medical knowledge 46
Life expectancy – an international comparison 7 Value of innovative therapies 47
Health spending as a percentage of GDP 8 Access to innovations 48
Life expectancy and health spending as a percentage of GDP 9 Opinion poll on access to medicines 49
Causes of death 10 Importance of innovations for the patient 50–52
Dementia 11 Pharma market by indication area 53
Cancer mortality by gender 12 Medicines produced using biotechnology and gene technology 54
Cancer mortality over time 13 Number of medicines in development close to market readiness 55
Chronic diseases: high blood pressure 14 Medicines for rare diseases 56
Chronic diseases: diabetes 15 Opinion poll on treatment of rare diseases 57
Healthcare costs by services 16
Healthcare costs over time 17 Leading in research and development 58
Medicines as a proportion of healthcare costs 18 Development path of a medicine 60
Price indexes in the healthcare system 19 Research cycle 61
Composition of the overall cost of a disease 20 Cost of drug development 62
Holistic view of disease costs 21 Development of vaccines for COVID-19 63
Funding regime of the healthcare system 22 Financing of R&D in Switzerland 64
Funding sources of the healthcare system 23 Financing of R&D by the pharma sector 65
Spending structure of Swiss households 24 Distribution of research expenditure in the private sector 66
2 3
Opinion poll on distribution of finances 25 Sales and research of Interpharma companies in Switzerland 67
Compulsory health insurance reserves and solvency ratio 26 Global spend on research and development 68
Insurance models in the basic health insurance 27 Distribution of research expenditure 69
Research and development intensity 70
Pharma market 28 Success rate of medicines 71
Pharma market 30 Clinical trials 72
Composition of drug price 31 Laboratory animal statistics 73
Growth elements of the pharma market 32 Protection of intellectual property 74
Price reductions of medicines 33 International comparison of patent applications 75
Comparison of drug prices 34 Digital Health Index 76
Comparative price level indices 35 Digitalization in the pharma sector 77
Sales outlets by sales revenue 36
Composition of pharma market 37 Strong economic policy framework 78
Generics market 38 Competitiveness 80
Generics substitution rate 39 Political stability 81
Biosimilars vs generics 40 Innovation 82
Biosimilars 41 Qualification structure of employees by sector 83
Pharma market by therapeutic area 42 Exports by sector 84
Imports of active ingredients 43 Development of pharma exports 85
Number of people employed in the pharma industry 86
Cross-border commuters 87
Employees, gross value added and exports 88Interpharma | Health Panorama 2021 Swiss healthcare system
Swiss healthcare Of all other countries worldwide,
system only in Japan is life expectancy
higher than in Switzerland.
The cancer mortality rate
in men and women is steadily fall-
ing, partly also thanks to medical
advances and the research efforts
of the pharmaceutical industry.
4 5
The proportion of medicines
accounts for around 12 percent
of healthcare costs and has
remained stable for decades.Interpharma | Health Panorama 2021 Swiss healthcare system
Life expectancy in Switzerland Switzerland has one of the highest
continues to rise life expectancies in the world
Life expectancy in Switzerland has doubled in the last 100 years. At an average of 83.8 years for the general population, Switz
erland was one of the world’s top countries for life expectancy
At the start of the 1990s, life expectancy for women was still in 2018.
about seven years longer than for men – by 2019 it was still
almost four years. According to the OECD, only in Japan do people live longer.
Mean life expectancy there is 84.2 years.
Thanks to better healthcare, new and innovative medicines,
improved hygiene and a healthier lifestyle, we are not only living Switzerland’s top ranking is thanks to the high-quality health-
longer, but also more healthily. care that is accessible to the whole population and also a high
quality of life, among other factors.
6 7
Mean life expectancy at birth Life expectancy for the population as a whole at birth
In years, 1900–2019 In years, 2018
Source: Federal Statistical Office (2020), Statistisches Lexikon der Schweiz.
90
US 78.7
85
DK 81.0
80 DE 81.0
75 UK 81.3
Source: OECD (2021), OECD Health Statistics 2018.
70 AT 81.8
65 NL 81.9
60 FR 82.8
55 IT 83.4
50 ES 83.5
CH 83.8
45
JP (2017) 84.2
40
1900 1920 1940 1960 1980 2000 2019 75 76 77 78 79 80 81 82 83 84 85
Women MenInterpharma | Health Panorama 2021 Swiss healthcare system
In comparison, Switzerland spends Switzerland has a high-quality
a lot on healthcare healthcare system
Health spending as a percentage of gross domestic product Countries with high health spending as a percentage of GDP tend
(GDP) reflects how much of its entire economic output a coun- to show higher life expectancy.
try spends on health goods and services and also invests in
healthcare infrastructure. Compared with other countries, Switzerland has both a high level
of health spending and a particularly high life expectancy.
In 2018, OECD countries spent an average of about 8.8% of
their GDP on the healthcare system. This figure has been rela- Countries that already enjoy a high life expectancy, however,
tively stable since 2013. achieve little extra improvement in life expectancy with additional
spending.
An international comparison puts Switzerland second behind
the USA with a percentage of 11.9%.
8 9
International comparison of healthcare expenditure as a Life expectancy in relation to the share of health expenditure
percentage of GDP, in percent, 2018 in gross domestic product, 2018
IT 86
8.7%
ES JP
9.0%
84 IT ES CH
NL 10.0% FR
UK 10.0% NL AT
82
UK
Source: OECD (2021), OECD Health Statistics 2018.
Source: OECD (2021), OECD Health Statistics 2018.
DK 10.1% DE
DK
AT 10.3% 80
JP 11.0% US
FR 11.3% 78
DE 11.5%
CH 11.9% 76
US 16.9%
74
0% 2% 4% 6% 8% 10% 12% 14% 16% 18% 3% 6% 9% 12% 15% 18%Interpharma | Health Panorama 2021 Swiss healthcare system
Cardiovascular diseases are the As life expectancy increases, grow-
most common cause of death in ing numbers of people are suffering
Switzerland from dementia
In Switzerland, 66’971 deaths were registered in Switzerland In 2019, there were 144’338 people in Switzerland living with
in 2018. In women, cardiovascular diseases were the most Alzheimer’s or another form of dementia. At 96’159, the number
common cause of death (32.2%). In men, 29.1% of deaths were of cases in women is much higher than in men (48’179).
attributable to the cardiovascular system.
Around 45% of women over 90 suffer from dementia. Among
Tumours and diseases of the cardiovascular system were men, around 30% of those over 90 are affected by dementia.
clearly the most common cause of death in both sexes in 2018.
Pharma companies worldwide remain engaged in research to
Men died significantly more often from tumours (30.4%) than find an effective therapy. For the first time in 20 years, a treat-
women (23.3%). Women died more often from diseases of the ment for Alzheimer’s was approved in the USA in June 2021.
psyche or the cardiovascular system.
10 11
Most common causes of death by gender Number of dementia patients
Deaths 2018: 67’088 Per age, 2019
Source: Swiss Alzheimer’s Association (2020), Demenz in der Schweiz 2019.
26’366
Cardiovascular system 30’000
22’785
Tumours Source: Federal Statistical Office (2021), Cause of Death Statistics.
Mental health disorders1 25’000
16’969
Respiratory system
15’552
Nervous system 20’000
Digestive system
10’268
10’163
Accidents and violence2 15’000
8’928
Metabolism and blood
7’136
7’153
5’881
Urogenital system 10’000
3’992
3’517
3’342
Infections
2’286
Suicide 5’000
Others
0
0% 5% 10% 15% 20% 25% 30% 35% 30–64 65–69 70–74 75–79 80–84 85–89 90+
Men Women
¹ Dementia (excluding Alzheimer’s), schizophrenia, dependence on psychotropic substances, affective disorders and
other mental health disorders ² Excluding suicide Men WomenInterpharma | Health Panorama 2021 Swiss healthcare system
Gender-specific differences in Cancer mortality rates are falling
cancer mortality also thanks to medical advances
In 2018, a total of 17’923 people died of cancer. More men The cancer mortality rate fell in both men and women between
(9’834) died from cancer than women (8’089). 2010 and 2018, which is due not least to medical advances and
pharma industry research in oncology.
Most deaths attributable to cancer, both in men and in women,
involve the digestive tract; the second-most common cause of In men, mortality from colorectal cancer decreased by around
death from cancer involves the respiratory organs. 42% between 2010 and 2018, and by 38% in women. Mortality
from lung cancer also decreased significantly for men, while it
The third-most frequent cause of death attributable to cancer is increased slightly for women.
breast cancer in women and cancer of the genital organs in men.
Prevention, early diagnosis and access to modern treatment
play a crucial role in cancer.
12 13
Deaths by type of tumour Development of cancer mortality rate per 100’000 inhabitants
2018 2010 and 2018
Women Men
60
Source: Federal Statistical Office (2020), Cause of Death Statistics.
Source: Federal Statistical Office (2020), Cause of Death Statistics.
858 1’021
10 50
255
2’236
347 3’030
40
1’409 690
30
166 857 20
238
335 10
1’390
1’427
668 2’197 0
787 Stomach Colon Lung Breast Prostate/
cervix
Digestive organs Respiratory organs Genital organs Lymph glands
Urinary organs Nervous system Skin Breast Others Men 2010 Men 2018 Women 2010 Women 2018Interpharma | Health Panorama 2021 Swiss healthcare system
A quarter of Switzerland’s population Diabetes affects 4.6 percent of the
suffers from high blood pressure population
Chronic diseases such as hypertension and diabetes are Diabetes is a metabolic disorder in which the blood sugar
steadily increasing in Switzerland, which is mainly attributable concentration is elevated. Inadequate treatment can lead, for
to long-term changes in lifestyle. example, to kidney damage, amputations or blindness.
Today more than 27% of Swiss people have hypertension, Switzerland’s population has seen an increase in the proportion
whereas in 1997 the proportion was around 20%. of those aged 15 years or older with diabetes from 3.3% in 1997
to 4.6% in 2017.
In men, the proportion of those with hypertension has risen
sharply from 19.1% in 1997 to 28.4% in 2017. In the case of Men and women in Switzerland are affected by diabetes to an
women, the proportion increased from 21.2% to 25.8% over the approximately equal extent: 4.8% of all men and 4.4% of all
same period. women suffered from some form of diabetes in 2017.
14 15
Proportion of Switzerland’s population aged over 15 years Proportion of Switzerland’s population aged over 15 years
with hypertension with diabetes1
28%
28%
5.5%
27%
27%
30% 6%
26%
26%
4.9%
4.8%
4.7%
4.6%
23%
4.5%
4.4%
22%
25% 5%
Source: Federal Statistical Office (2020), Swiss Health Survey.
Source: Federal Statistical Office (2020), Swiss Health Survey.
4.2%
21%
21%
21%
21%
21%
4.0%
20%
3.9%
3.8%
19%
3.6%
3.3%
3.3%
3.3%
20% 4%
15% 3%
10% 2%
5% 1%
0% 0%
Total Men Women Total Men Women
1997 2002 2007 2012 2017
1997 2002 2007 2012 2017 ¹ Diabetes Type 1 and Type 2Interpharma | Health Panorama 2021 Swiss healthcare system
Holistic view of healthcare costs Healthcare costs in the last 9 years
have risen on average by 2.8 percent
In 2019, healthcare expenditure in Switzerland amounted to a
total of CHF 82.1 bn, which was 2.3% up on the previous year.
a year
Over the period from 2010 to 2019, total healthcare costs rose
Outpatient and inpatient curative treatment, together with long- by 2.8% per year. The biggest growth was seen in the cost of
term care, accounted for two-thirds of total healthcare costs. support services (e.g. public services, laboratory analysis) with
an increase of 7.3% per year.
At CHF 9.9 bn, medicines account for 11.8% of healthcare
expenditure. In other words, for every 100 francs spent on With a growth of 2.4%, the increase in spending on medicines
healthcare, almost 12 francs go on medicines. was below the average.
An assessment of growth shows a shift away from inpatient
(+1.6%) to outpatient (+3.1%) curative treatment.
16 17
Source: Federal Statistical Office (2021), Kosten und Finanzierung des Gesundheitswesens.
Source: Federal Statistical Office (2021), Kosten und Finanzierung des Gesundheitswesens.
Breakdown of healthcare costs by services provided Cost development according to services provided
Total costs in 2019 2010–2019, average annual growth
3.3% 2.2% Support services 7.3%
4.1%
4.7% Rehabilitation 3.5%
26.1%
Outpatient curative treatment 3.1%
8.2% Chronic care 2.9%
CHF Total 2.8%
82’080 m Medicines 2.4%
11.8% Other healthcare goods 2.1%
Inpatient curative treatment 1.6%
20.4% Administration 1.5%
19.2% Prevention 0.6%
0% 1% 2% 3% 4% 5% 6% 7% 8%
Outpatient curative treatment Chronic care Inpatient curative treatment
Medicines Support services Rehabilitation
Administration Other healthcare goods PreventionInterpharma | Health Panorama 2021 Swiss healthcare system
The cost of medicines as a proportion Since the introduction of the Health
of healthcare costs is stable Insurance Act (HInsA) the price index
In 2019, the cost of medicines as a percentage of healthcare
for medicines has fallen by 40 percent
costs remained stable at 11.8%. As a proportion of the costs The price index for medicines is the only price index in the
incurred under the compulsory basic health insurance, it stood healthcare system that has continually fallen since the enact-
at 20.4%, which was actually a slight fall. ment of the HInsA in 1996.
While many innovative medicines are coming onto the market, At 57 points, the price index in 2020 was more than 40% lower
these medicines are growing compared to previous year than in 1996, whereas the hospital price index, for example, was
(+1.9%) as a proportion of healthcare costs (+2.3%). around 11% higher in 2020 than in 1996.
Since around three-quarters of medicines are financed through The prices of reimbursable medicines are reviewed every three
the health insurance, unlike other service categories (e.g. in years and reduced where necessary, which leads to major
patient curative treatment), they account for a higher proportion savings in the healthcare system.
of health insurance costs than they do of total healthcare costs.
18 19
Source: Federal Statistical Office (2021), Kosten und Finanzierung des Gesundheitswesens.
Cost of medicines as a proportion of healthcare and basic Price indexes in Switzerland’s healthcare system
health insurance costs, 2010–2019 1996–2020
Source: Federal Statistical Office (2021), National Consumer Price Index.
125 126
25%
115
20% 111
21.5% 21.2% 21.0% 20.0% 19.6% 19.7% 20.0% 20.5% 21.4% 20.4% 105 103
100
15% 95
10% 12.2% 12.0% 11.8% 11.6% 11.3% 11.4% 11.7% 11.8% 11.8% 11.8% 85
75
5%
65
57
0% 55
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 2020
Cost of medicines (pharmacies, drugstores, self-dispensing doctors, hospitals Medicines Hospitals Dentists Doctors
inpatient and outpatient) as percentage of healthcare costs Healthcare Consumer spending
Cost of medicines (pharmacies, self-dispensing doctors, hospitals inpatient and Indexed: 1996 = 100
outpatient) as percentage of basic health insurance costsInterpharma | Health Panorama 2021 Swiss healthcare system
The cost of disease from a societal Impact of therapeutic innovations
perspective on healthcare costs
The burden of disease is primarily felt by those afflicted with Innovative medicines are a form of treatment innovation and
the disease. But others are often affected as well: for the health can have an impact on all three cost categories.
insurer, medical treatment costs are incurred; for the employer,
productivity losses are incurred; and the social environment of In general, direct treatment costs rise with an innovation,
the patient also bears the consequences of a disease. whereas indirect and intangible costs fall. From an overall
economic perspective, it is particularly interesting to know
A distinction can be drawn between direct costs (medical and whether the innovative treatment leads to a fall in the total
non-medical treatment costs), indirect costs (lost resources) cost of disease, i.e. the sum of the direct, indirect and intan-
and intangible costs (reduced quality of life), the sum of which gible costs. The question of how the make-up of the overall
corresponds to the cost of a disease to society. costs develop is secondary.
20 21
Composition of overall costs of a disease Disease costs from a societal perspective
Illustration Impact of innovation; illustration
Source: Polynomics (2020), Gesellschaftliche Betrachtung der Krankheitskosten.
Source: Polynomics (2020), Gesellschaftliche Betrachtung der Krankheitskosten.
Innovation
A drug innovation comes
onto the market.
Direct costs
Medical and non-medical costs of treatment
Indirect costs
Lost resources, especially work time for
patients and relatives
Intangible costs
Reduced quality of life, especially due to
pain and suffering Starting point New situation with innovation
Current standard therapy involves Spending on the drug innovation
relatively low direct costs. increases direct costs.
Indirect costs are relatively high. Indirect costs can be reduced.
Intangible costs are relatively high. Intangible costs can be reduced.
The overall societal costs of the The overall societal costs of the
disease are high. disease fall.Interpharma | Health Panorama 2021 Swiss healthcare system
More than 40 percent of healthcare Private households directly finance
costs covered by social insurance 63 percent of healthcare costs
Of the healthcare costs incurred in 2019, amounting to CHF Private households finance 63% of healthcare costs; they pay
82.1 bn, 44.3% were covered by social insurance schemes. the largest share of this in contributions to social insurance
Federal, cantonal and municipal authorities covered 22.4% of (31.8%). They pay more than a quarter directly for services that
healthcare costs in 2019. are not covered by the health insurers (out-of-pocket pay-
ments).
In the present system, 100% of outpatient care is covered by
health insurers, while in the case of inpatient care 45% is cov- Around 30% of healthcare costs are financed by the public
ered by health insurers and 55% by the cantons. EFAS (the bill purse. These costs are likewise covered by private households
for unified financing of outpatient and inpatient services) calls to a substantial extent in the form of taxes.
for this system to be abolished and funding to be unified so as
to reduce disincentives in the system. In addition to levies in the form of taxes, companies also play a
part, covering 6.6% of healthcare costs.
22 23
Source: Federal Statistical Office (2021), Kosten und Finanzierung des Gesundheitswesens.
Source: Federal Statistical Office (2021), Kosten und Finanzierung des Gesundheitswesens.
Funding regime of the healthcare system Funding sources of the healthcare system
Total costs 2019 Total costs 2019: CHF 82’080 m
Public purse 30.4% CHF 24’952 m
1.8%
7.0%
Private households 63.0% CHF 51’707 m
22.4% 44.3% Out of pocket¹ 24.5% CHF 20’124 m
CHF
82’080 m Social insurance 31.8% CHF 26’099 m
Private insurance 5.5% CHF 4’524 m
Others² 1.2% CHF 960 m
24.5%
Companies 6.6% CHF 5’421 m
Social insurance 1
Private households Public purse
Private insurance Other private funding2 ¹ Expenditure not covered by insurance (excess, spending up to franchise)
¹ Including compulsory basic health insurance ² Foundations, etc. ² Donations, legaciesInterpharma | Health Panorama 2021 Swiss healthcare system
In comparison, Swiss households Drug and vaccine research gains
spend little on medicines importance
One fifth of household spending goes on rent, making rent by gfs.bern conducts a representative survey, the “Health Monitor”
far the biggest expenditure item of private households. each year on behalf of Interpharma. In the 2021 survey, 1’200
voters were asked for their views on the Swiss healthcare
Swiss households also spend 11.9% of their budget on food, system.
6.9% on restaurant meals and hotel stays and 7.8% on cars,
motorcycles and bicycles. 70% of voters were in favour of investing more in research on
medicines and vaccines. The coronavirus crisis has highlighted
People in Switzerland overall spend more of their disposable the relevance of these areas.
income on alcohol and tobacco (3.8%) than on medicines (3.5%).
Respondents also want to see more funding for public hospitals
and intensive care. Naturopaths and alternative medicine have
fallen in favour.
24 25
Spending structure of Swiss households Trend: distribution of finances
Basket of goods in National Consumer Price Index, 2021 In percent of respondents, proportion “more”, 2010–2021
Source: Federal Statistical Office (2021), National Consumer Price Index.
Rent 20.1% 80
Food 11.9%
70
Cars, motorcycles and bicycles 7.8%
Restaurants and hotels 6.9% 60
Hospital services 5.9%
Doctor/dentist visits1 5.3% 50
Alcohol and tobacco2 Source: gfs.bern, Health Monitor 2021, (N = 1200).
3.8%
Medicines 3.5% 40
Telecommunications 2.8%
30
Clothes and shoes 2.8%
Leisure and culture 2.7% 20
Package holidays 1.1%
Newspapers and books 0.8% 10
Garden and pets 0.8%
0
0% 5% 10% 15% 20% 25% 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Research on medicines and vaccines (up to 2020: medicines research)
Naturopaths/alternative medicine Public hospitals Intensive care medicine
¹ Outpatient services (excluding hospital outpatients), excluding medicines
² Incl. alcohol in restaurants and hotels Range of health insurance benefitsInterpharma | Health Panorama 2021 Swiss healthcare system
Reserves in the basic health insur- More and more people are opting
ance continue to rise year-on-year for an alternative insurance model
Reserves in the compulsory basic health insurance rose to Alternative insurance models, such as the HMO and the gate-
almost CHF 10 bn in 2019, an increase of more than 20% year- keeper model, have seen strong growth, especially since 2006.
on-year, making it a new record high.
Overall, it is clear that the insurance model with an ordinary
The solvency ratio determines the factor by which the reserves franchise has steadily decreased in the period up to 2019. Only
exceed the legal minimum. A value of 2 means that the reserves one in four people still uses such a model.
are twice as high as the minimum level.
Insurance models with a range of franchises to choose from
In 2019, the reserves of health insurers corresponded approxi- make up the smallest proportion today along with the model
mately to the payments for three insurance months. with bonus insurance*.
26 27
Source: Federal Office of Public Health (2020), Statistics on compulsory health insurance.
Source: Federal Office of Public Health (2020), Statistics on compulsory health insurance.
Reserves of compulsory basic health insurances, 1996–2019 Types of insurance in the compulsory basic insurance scheme
Solvency ratio, 2012–2019 1996–2019, types of insurance over time
12’000 2.4 100%
90%
10’000 2.0
80%
8’000 1.6 70%
60%
6’000 1.2 50%
40%
4’000 0.8
30%
2’000 0.4 20%
10%
0 0.0 0%
1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016 2019 1996 2000 2004 2008 2012 2016 2019
Ordinary franchise Selectable franchise
Insurances reserves Solvency ratio Other types of insurance (HMO, gatekeeper model, etc.)
Left axis: reserves in CHF millions; right axis: solvency ratio * The model with bonus insurance has a share of less than 0.4% since 1996 and is therefore not visible in the chart.Interpharma | Health Panorama 2021 Pharma market
Pharma market Patent-protected medicines make
up the largest proportion of the
pharma market at 48 percent.
In the last 15 years, the generics
market has almost tripled.
The price reviews of medicines
28
result in annually recurring sav- 29
ings of more than one billion
francs.Interpharma | Health Panorama 2021 Pharma market
Price cuts dampen growth of the The price of a medicine is made
pharma market up of various components
In 2020, the pharmaceuticals market in Switzerland achieved a At 70%, the largest component in the price of a medicine is the
value-based volume of CHF 6.3 bn at ex-factory prices (+2.9% ex-factory price, which the pharmaceutical company receives
year-on-year). Contrary to the feared cost increases for medi- for research, development and production.
cines, cost growth remains moderate, despite groundbreaking
innovations. Along with the ex-factory price, there is the trade price to be
considered. This consists of a price-related and a pack-related
Sales of patent-protected medicines in the reimbursable segment surcharge. Additional price components are the service-based
were up 4.6% over 2019. charge for pharmacies and value-added tax.
The number of packs sold fell slightly by 1.8% and stand at 183 For a medicine priced at 100 francs, 70 go to the producer and
million packs in 2020. 30 to the trade, to doctors, pharmacists and, through value-
added tax, to the federal government.
30 31
Market value Composition of drug price
Source: santésuisse and Interpharma (2021), Gemeinsamer Auslandpreisvergleich.
2020: CHF 6’331.7 m at ex-factory prices 2019
2.5%
7’000 100% 3.8%
+2.8% +2.9%
+2.3% 90%
6’000 23.8%
80%
5’000 70%
4’000 60%
5’985.0 6’154.8 6’331.7 50%
3’000 40% 69.9%
2’000 30%
20%
1’000
10%
Source: IQVIA (2021).
0 0%
2018 2019 2020
Pharma (FAP) Trade Service-based charges (excl. for pharmacies)
Federal govt (VAT 2.5%)
The trade includes both a price-related surcharge in % of the ex-factory price (FAP) and a pack-related surcharge in CHF
depending on the level of the FAP.Interpharma | Health Panorama 2021 Pharma market
Several growth elements drive the Major savings in the healthcare sys-
development of the pharma market tem thanks to drug price reductions
The pharma market in Switzerland grew by 2.9% in 2020. This In the price review, the FOPH divides the medicines into three
growth was driven mainly by the volume of medicines sold groups, one of which is assessed every three years for the
(+2.4%). efficacy, suitability and cost-effectiveness of the medicines in
that group.
New products – e.g. for cancer or autoimmune diseases – have
likewise contributed to this growth. There are ever more medi- In 2020, the prices of more than 300 medicines in group A
cines for hitherto untreatable diseases. were reduced by an average of 11%.
The triennial price reviews by the FOPH have led to a 2.4% The reviews lead to annually recurring savings of more than
decline in the overall market. With these savings, pharma one billion francs. The pharma industry is the only actor in the
companies are making a major contribution to help contain the Swiss healthcare sector that makes a significant contribution to
growth of costs in the healthcare system. cost containment through institutionalized price reviews.
32 33
Development of individual components at ex-factory prices Savings through price reductions
Source: Federal Office of Public Health (2021), Letters of information from 13.12.2017,
Growth 2020
Group A Group B Group C
06.12.2018, 02.12.2019 and 04.12.2020, press release from 30.10.2020.
Overall market Volume
changes* Gastroenterology Nervous system Cardiovascular
Others**
New products Kidneys and water
and line exten- Metabolism Pulmonary and respiratory
balance
+2.9% sions
+2.4%
Source: IQVIA (2021), Pharma Market Switzerland.
Price +2.0% Antidotes Blood Infectious diseases
+0.9% reductions
Cation exchangers Dermatology Gynaecology
Odontostomatology Ophthalmology
–2.4% Diagnostics Otorhinolaryngology
* Volume changes: percentage of revenue growth resulting from increased sales of products launched on the market
before 2019. ** Interactive effects: caused by simultaneous interactions of price and volume changes. Residual effects:
change in existing strengths from smaller to larger packs or vice versa.Interpharma | Health Panorama 2021 Pharma market
Original medicines are only 6.9 per- Switzerland in general has an
cent more expensive than abroad above-average price level
In April 2021, the 250 strongest-selling patent-protected original In an international comparison of price level indices with the
products were on average 6.9% cheaper in comparable foreign 27 member states of the EU in 2020 (Switzerland = 100%), the
countries than in Switzerland. The price difference has grown level of prices in Switzerland is generally above average.
year-on-year especially as a result of the stronger Swiss franc.
At constant currency exchange rates the difference would The aggregate of all goods classes, or gross domestic product
actually have fallen. (GDP), makes clear in particular the difference in disposable
income. Based on GDP, Switzerland is 55% above the EU-27
As a result of the effective price reviews of the FOPH, prices in basket of countries.
Switzerland are only slightly higher than abroad.
Both government (public service) and individual consumption
With these regular price reviews, the pharma industry makes services are on average about twice as expensive in Switzer-
annually recurring savings in the healthcare sector of more than land as in other European countries.
Source: Eurostat (2021), Comparative price level indices and real expenditures for ESA 2010 aggregates.
one billion francs according to Federal Councillor Berset.*
34 35
Source: Santésuisse and Interpharma (May 2021), Gemeinsamer Auslandpreisvergleich.
Top 250 original products, basket of 9 countries Comparative price level indices
Exchange rate CHF/EUR: 1:11**, prices of April 2021 Switzerland = 100, 2019
105
100 99
100 97 100
93 91 91 93
84 87
80
80 80
60 60
40 40
20 20
0 0
CH
DK
FI
SE
NL
UK
AT
BE
DE
FR
CH
DK
FI
SE
NL
UK
AT
BE
DE
FR
CH
DK
FI
SE
NL
UK
AT
BE
DE
FR
CH
DK
FI
SE
NL
UK
AT
BE
DE
FR
CH DE DK NL AT FI SE BE UK FR
sk s
ba trie
Gross domestic Consumption Services Government
et
un
product individual services
co
9-
consumption
* Source: Tages-Anzeiger, 23.09.2020 ** Exchange rate applied by the FOPH when reviewingInterpharma | Health Panorama 2021 Pharma market
Pharmacies remain the most im Patent-protected products continue
portant sales outlet for medicines to make up the bulk of the pharma
Pharmacies are still the most important sales outlet for pharma
market
ceuticals: 65% of all packs are sold through pharmacies. In terms Patent-protected medicines account for the largest share of
of value, these sales account for almost 48% of total sales. the Swiss pharma market at 48%.
Self-dispensing doctors and hospitals each account for around The generics-eligible market, comprising off-patent original
a quarter of pharma sales in terms of value. products with generic competition and generics, has a market
share of around 26%.
Chemists or drugstores account for only a small percentage of
pharma sales at 1% in terms of value. In 2020, generics accounted for a greater share of the reim-
bursable drugs market than original products.
36 37
Sales outlets by sales generated Composition of the pharmaceutical market
In CHF millions, at ex-factory prices, 2008–2020 2020
67 6% 1%
8%
1’632
10%
Source: IQVIA (2021), Pharma Market Switzerland. 48%
3’030
CHF 6.3 bn
12%
1’600
14%
Source: IQVIA (2021).
Patent-protected products Generics Original Products whose patent pro-
Pharmacies SD doctors1 Hospitals Chemists/drugstores tection has expired Out of market Reference products (products with expired
¹ Doctors with own in-practice pharmacy are defined as self-dispensing doctors (SD doctors). patent protection and at least 1 generic or 1 biosimilar) BiosimilarsInterpharma | Health Panorama 2021 Pharma market
Since 2005, the generics market has Increasing level of substitution in
almost tripled in value the off-patent market
Generics are identical copies of off-patent original products The level of substitution with generics in the off-patent market
based on synthetic active substances. shows the proportion of generics that are sold in place of
original products.
Reimbursable generics achieved a value of around 760 million
francs in 2020. Measured by the number of tablets, generics were also dis-
pensed in Switzerland in more than 60 of 100 cases in which
In the last 15 years, value of the reimbursable generics market generics were available in 2020.
has almost tripled.
Since 2012, the level of substitution with generics in the
off-patent market has steadily increased.
38 39
Generics market Generics substitution rate
Reimbursable, in CHF millions, at ex-factory prices, 2005–2020 Total, 2012–2020
800 760 100%
700 90%
40%
80%
600
70%
500 60%
400 50%
300 40%
60%
30%
200
20%
100 10%
Source: IQVIA (2021).
Source: IQVIA (2021).
0 0%
2005 2008 2011 2014 2017 2020 2012 2013 2014 2015 2016 2017 2018 2019 2020
Generics Off-patent original products with generic competitionInterpharma | Health Panorama 2021 Pharma market
Biosimilars vs generics Biosimilars are gaining in importance
Generics consist of simple molecules. Biosimilars on the other Over the last decades, modern biotechnology has brought
hand are produced from live cells, which cannot be copied about huge medical breakthroughs in mostly life-threatening
exactly. A biosimilar is therefore never identical to the original diseases, such as cancer.
product, but at most similar.
Following patent expiries, the first copies of these innovative
The complexity involved in the development and production of technologies have entered the market.
biosimilars is vastly greater than with generics. For this reason
the development costs alone are 100 times higher for a biosimi- In Switzerland, biosimilars are currently still little used – in 2020,
lar than for a generic. they account for only 1% of the medicines market. However,
the number of biosimilars available in Switzerland has almost
In Switzerland, high standards of patient safety are called for in quadrupled since 2017, from 7 to 27 products.
the approval of biosimilars and extensive clinical trials and proof
of safety are required.
40 41
Difference between generics and biosimilars Biosimilars market
Number of biosimilars, 2012–2020
Generics Biosimilars 30
27
Very high, clinical trials 25
Complexity Minimal
required
20
Identical copy of the original Similarity must be proven
Comparability
product through clinical trials
15
Development costs At least CHF 1 million At least CHF 100 million
10
Number of
Many Few 5
Source: Interpharma (2020).
producers
Source: IQVIA (2021).
0
2012 2013 2014 2015 2016 2017 2018 2019 2020Interpharma | Health Panorama 2021 Pharma market
Many new therapies for cancer, Imports of active ingredients,
autoimmune and viral diseases antibiotics and vaccines
Ever more treatments for cancer, autoimmune and viral diseases When it comes to supplies of active ingredients, vaccines and
increase the chances of a cure for patients. antibiotics, Switzerland is dependent on global trade.
In 2020, a total of 329 therapies against cancer were available. The EU is our most important trading partner: 52% of active
Since 2012, 67 new and innovative therapies have been added. ingredients, 93% of antibiotics and 77% of vaccines come from
the EU.
The number of available autoimmune therapies and antiviral
medicines has increased by 56% and 47%, respectively, since The USA is the second-most important trading partner for
2012. active ingredients. Almost a quarter of active ingredients come
directly from Asia.
42 43
Total market, number of available therapies Imports of active ingredients
In CHF millions, at ex-factory price, 2012–2020 Share by value (CHF), 2020
350 329 52.0% 23.1% 10.5% 14.4%
300 284 Ingredients
262
250
Source: Eidgenössische Zollverwaltung (EZV) (2021).
76.9% 2.3% 12.6% 8.2%
200
Vaccines
150 122
100 89 87 92.9% 6.4%
78 71
59
Antibiotics
50
0.1% 0.5%
Source: IQVIA (2021).
0
Cancer Autoimmune diseases Antiviral agents 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
2012 2016 2020 EU Asia USA OthersInterpharma | Health Panorama 2021 Focus on the patient
Focus on the patient In 2020, only 4 of 38 medicines
were included in the Specialities
List within the stipulated
60 days.
Swiss people want access to
medicines from the day of mar-
keting authorization.
44 45
30 percent of medicines prod
uced using biotechnology and
gene technology are used for
cancer.Interpharma | Health Panorama 2021 Focus on the patient
Better health thanks to medical The benefit of innovative therapies
advances accrues at several levels
The past 70 years have seen rapid growth in medical advances. The direct benefit of innovative therapies can be seen on three
While it took 50 years for medical knowledge to double in 1950, levels: patients benefit from the chance of a cure, a more rapid
it took only 73 days in 2020. recovery or a better quality of life.
Medical progress has led to many new treatment options, such Society benefits from innovations. Shortened and improved
as gene therapy, cell therapy and CAR-T therapy. healing processes reduce treatment and care costs, and enables
patients to return to work sooner.
Investments in medical progress remain necessary. There are
still many diseases that can only be treated partially, if at all, Ultimately the economy also benefits, because new medicines
such as cancer and Alzheimer’s. allow reinvestments in research and development. This leads to
the creation of jobs, generates value added and brings higher
tax revenues for the state.
46 47
Source: Densen, Peter (2011), Challenges and Opportunities Facing Medical Education, American
Growth of medical knowledge Overall consideration of the benefits
1950
50 years
1980
7 years
Clinical and Climatological Association, 122, p. 48–58.
Direct benefit to the Benefits to society Benefits to the economy
patient • Lower costs through • Jobs
2010
• Higher life expectancy shorter healing process • R&D investments
3.5 years
• Faster recovery • Quicker return to work • Contribution to gross
• Chance of a cure • Reduced nursing costs value added
In 2020 • Better quality of life • Effects on other social • Taxes
Source: Interpharma (2020).
medical knowledge doubles every 0.2 years, i.e. every 73 days • Reduced emotional institutions (unemploy-
burden ment insurance, disability
insurance)Interpharma | Health Panorama 2021 Focus on the patient
Access to innovations in Switzerland Access to medicines from the day
comes with a delay of marketing authorization
As at end of 2020, a total of 169 applications for approval had According to the Health Monitor 2021, almost 93% of respond-
not yet led to inclusion in the Specialities List (SL). ents want access to new medicines from the day marketing
authorization is granted by Swissmedic.
Since 2014, there has been a sharp increase in the number of
medicines not yet reimbursable. In 2020, only 4 of 38 products More than half of respondents believe there is a need for
(barely 11%) were included in the Specialities List within 60 change. This reflects the dissatisfaction of the population with
days as stipulated in the regulations. today’s reimbursement processes for new medicines.
Around 66% of all inclusions in the SL in 2020 occurred after Most respondents were in favour of both the proposed pro-
more than 120 days (25 of 38). visional approvals with flexible price models and also direct
negotiation between health insurers and drug producers.
48 49
Interval between Swissmedic approval and inclusion in SL, Acceleration of access to medicines
along with cumulated non-inclusions, in days, 2014–2020 Health Monitor, 2021
Source: Swissmedic (2014–2021), Specialities List, calculations by Interpharma.
180
160 Access to new medicines
directly after market approval
140
Health insurance funds and drug
120
manufacturers should negotiate
100 Source: gfs.bern, Health Monitor 2021, (N = 1’200). directly with each other
169
80 Provisional marketing authoriza-
133 136
60 tions with flexible pricing models
34 92
40 18 72
4 57 6 54 27 23
17 25 Change is not necessary
20 26 10 27 12
25 9
9 11 3 5 11 4 9
0
2014 2015 2016 2017 2018 2019 2020 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Number of applications without inclusion (cumulated)
Number of inclusions > 120 days (new active substances and indications)
Number of inclusions > 60 days and ≤ 120 days (new active substances and indications) Fully agree rather agree do not know/no answer
Number of inclusions ≤ 60 days (new active substances and indications) rather disagree do not agree at allInterpharma | Health Panorama 2021 Focus on the patient
The cure rate for hepatitis C has Access to AIDS medicines for more
more than doubled and more people
The cure rate for hepatitis C has more than doubled from about In 1983, the AIDS virus was discovered for the first time under
40% with the 1st generation of medicines to more than 95% the electron microscope. At the height of the epidemic, almost
with the 4th generation. 2 million people were dying of the virus each year.
With the new oral combination therapy, the duration of treat- Since 2000, more and more people have had access to AIDS
ment at 8 to 12 weeks is less than a quarter of the original therapies. According to UNAIDS, the number of patients in
duration of treatment. therapy worldwide has risen from 0.6 million to more than 27
million.
Medical progress has led not only to a simpler treatment for
patients, but also to a better tolerability of the medication. As a result of these successful therapies, the number of AIDS
deaths worldwide has more than halved in the last 20 years.
Antiretroviral therapies enable AIDS patients to lead an almost
normal life today.
50 51
Chronology of hepatitis C treatment Access to AIDS drugs increased sharply
1999–2015, cure rate In million people, 2000–2020
Source: PhRMA (2017), Prescription Medicines: International Costs in Context.
95–96%
90%
30 27.4 1.8
63–80%
25 1.5
Source: UNAIDS (2021), Fact sheet World AIDS Day 2020.
41% 20 1.2
15 0.9
0.7
10 0.6
1st generation 2nd generation 3rd generation 4th generation
(1999–2010) (2011–2013) (2013–2014) (2014–2015) 5 0.3
48 weeks* 24–28 weeks* 12 weeks* 8–12 weeks*
0 0.0
2000 2005 2010 2015 2016 2017 2018 2019 2020
Improved compatibility and easier treatment
Number of patients in therapy (left axis)
* Treatment duration Number of deaths (right axis)Interpharma | Health Panorama 2021 Focus on the patient
Huge improvements in the treatment Many new forms of therapy for
of cancer cancer
Thanks to new, innovative treatment methods, the past decades Cancer patients are benefiting from many new forms of treat-
have brought a huge improvement in the treatment of cancer. As ment: in 2020, the market share of cancer therapies amounted
many as 50% of all cancers can already be treated today. to 19% of the entire market.
Since 1972, the chances of a cure for cancers in children have Medicines for diseases of the central nervous system – which
doubled from 40% to 80%. Both in breast cancer and in colon include analgesics, medicines for disorders such as epilepsy
cancer, the mortality rate has fallen by around 50% in the last and also treatments of mental disorders – attained the second-
three decades. largest market share in 2020.
Further intensive research is needed to ensure that cancers can With a market share of almost 11%, infectious diseases were
be treated better still in the future. a further important indication area in 2020. Treatments here
include e.g. medicines for hepatitis C, HIV and antibiotics, as
well as vaccines.
52 53
Source: Childhood cancer research Switzerland (2021); BFS, Statistics for causes of death (2021).
Chances of a cure in cancer Market share of medicines by indication area
Year 1972, 1990, 2018 Market volume 2020: CHF 6’331.7 m, at ex-factory prices
100% 100%
Cancer 19.0%
Central nervous system 15.2%
80% 50%
Infections 10.8%
of all can-
Cardiovascular 8.5%
cers can be
successfully Blood formation 6.5%
50% 50% treated Respiratory system 5.3%
40% Digestive system 4.9%
Cancer is Musculoskeletal system 4.5%
easier to Sensory organs 4.2%
control Urogenital system 3.4%
Skin 3.4%
Others 14.5%
Source: IQVIA (2021).
1972 2018 1990 2018 1990 2018 0% 2% 4% 6% 8% 10% 12% 14% 16% 18% 20%
Chances of a cure Reduction of Reduction of
in cancer in mortality rate in mortality rate in
children breast cancer colon cancerInterpharma | Health Panorama 2021 Focus on the patient
The proportion of innovative biotech Broad research portfolios give hope
and gene technology products is to patients
growing continuously In 2019, a total of 6’100 products were in various stages of
Many innovative medicines are produced in genetically modified development. Compared with the previous year, the number of
organisms using biotechnological methods. Unlike with classical products in development were up by 5.6%.
chemical substances, these are mostly complex, high-molecular-
weight proteins. The steady growth of new products reflects not only medical
progress, but also the fact that pharma companies reinvest a lot
The proportion of medicines produced using biotechnology or in research and development.
gene technology has grown steadily since the 1990s, which is
good news for patients because innovative medicines promise Cancer therapies are a particular focus of research on new
new treatment options in many areas. medicines, but new treatment options are also being constantly
sought for infectious diseases, diseases of the central nervous
About 30% of gene technology products are used to treat system and respiratory disorders.
cancers.
54 55
Market for biotech and gene technology products Number of active agents in development stages close to
Analyse der wichtigsten Finanzkennzahlen der Geschäftsjahre 2017, 2018 und 2019.
In CHF millions, at ex-factory prices1, 1990–2020 marketing authorization, 2017–2019
1’600 1’473
Source: Ernst & Young (2020), Die grössten Pharmafirmen weltweit.
2’140 2’862 778 145 177
1’400 2019
1’200
1’000 2’027 2’677 764 141 171
800 2018
600
1’900 2’582 746 163 173
400
2017
200
Source: IQVIA (2021).
0
1990 1993 1996 1999 2002 2005 2008 2011 2014 2017 2020 0 1’000 2’000 3’000 4’000 5’000 6’000
Phase 1 Phase 2 Phase 3 Filed Approved
1
As from 2011 new calculation of gene technology products 21 largest pharma companies worldwide (Interpharma members excl. Allergan, Lundbeck, UCB and Vifor)Interpharma | Health Panorama 2021 Focus on the patient
Ever more medicines for rare Respondents are in favour of
diseases treatment for rare diseases
A disease is considered rare when it affects fewer than 5 out When it comes to rare diseases, most respondents want the
of 10’000 people. Since there are known to be 6’000 to 8’000 treatment of such diseases to be covered by the basic health
such diseases, the entirety of rare diseases can be likened to a insurance, according to the Health Monitor.
widespread disease.
95% believe there is a duty to provide reimbursement. This
The number of indications with orphan drug status is continu- percentage has remained consistently high over the years and
ously rising, because many pharma companies are engaged in shows the importance that Swiss people attach to therapies for
research on rare diseases. rare diseases.
In 2020, there were 181 approved medicines with orphan drug In 2021, only 5% of voters surveyed take the view that rare dis-
status. These are used for 253 indications, e.g. to treat rare eases should not be treated.
diseases of the immune or nervous system, rare metabolic dis
orders and also rare forms of cancer.
56 57
Number of indications with orphan drug status Trend statements on the treatment of rare diseases
Total: 181 medicines with orphan drug status, 2020 In percent of respondents, share strongly/very strongly agree,
2021
253
Source: Swissmedic (2021), Human medicines with orphan drug status.
250 100
90
200 80
70
Source: gfs.bern, Health Monitor 2021, (N = 1’200).
150 60
50
100 40
30
50 20
10
0 0
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Treatment always takes priority Treatment with improved quality of life
Case-by-case decision Depending on chances of survival
Define upper limit Depending on age If costs are too high = no treatment
Not to be used on any accountInterpharma | Health Panorama 2021 Leading in research and development
Leading in research Developing a new medicine
and development takes an average of 12 years and
comes at a cost of $ 2.5 billion.
50 percent of pharmaceutical
research spending goes into
basic research.
58
Patent protection allows re- 59
investments in pharmaceutical
research.Interpharma | Health Panorama 2021 Leading in research and development
The long path from laboratory to Patent protection allows reinvest-
patient ments in new medicines
Pharma research is a high-risk undertaking: the development Many development stages and administrative hurdles have to
of a medicine takes 12 years on average, and the risk of failure be overcome before a medicine is ready for the market. This
is 90%. process is associated with high costs.
Often unsatisfactory effects or serious side effects are only Patent protection often begins already in the early phases of
identified during expensive clinical trials. development. So the validity of a patent is often well-advanced
by the time the medicine goes on sale.
Out of 10’000 substances, 20 make it into the preclinical phase.
Of these 20 substances from the preclinical phase, 10 make it Not until the decision on reimbursement is made do medicines
into the clinical phase. Of these 10, only one eventually reaches begin to generate income for the companies. This income must
the market as a finished product. be high enough for the companies to recoup sufficient funds
for research into new medicines.
60 61
Steps in the development of a medicine Research cycle
Illustration
Basic
> 1 million substances research
10’000 substances
Patent expiration Preclinical phase
20 substances
10 products 1 product
Production and Clinical phase
distribution
0 5 10 15 20 years
Source: Interpharma (2021).
Source: Interpharma (2021).
Further studies after Approval
Preclinical Clinical approval
Research Marketing
phase phase
1 2 3 4
Remuneration
Expenses Revenues
Outer circle: research cycle, inner circle: patent expiryInterpharma | Health Panorama 2021 Leading in research and development
A new medication requires billions COVID-19 vaccine development in
in investment record time
An average of 12 years passes before a new medicine is ready for Before 2020, the development of the measles vaccine lasted
the market. 10 years, making it one of the fastest vaccine developments in
the world.
The process from research and development to market readiness
costs an average of 2.5 billion dollars, making the development To combat the COVID pandemic, the pharma industry already
of a new medicine almost 15 times more expensive today than in developed and launched onto the market a safe and highly
the 1970s. effective COVID vaccine within a year.
The investments in research and development are a high-risk It took less than 300 days from the first genome sequencing
Source: OurWorldInData.org (2020), Nature analysis; Excler, Jean-Louis / Saville, Melanie / Seth, Berkley / Kim, Jerome H.
business in view of the very high failure probability. of the SARS-CoV-2 virus to the availability of the first vaccine
efficacy study. This was also made possible thanks to concen-
(April 2021), Vaccine development for emerging infectious diseases, Nature Medicine, Vol. 27, S. 591–600 (2021).
Source: Joseph A. DiMasi, Henry G. Gravowski, Ronald W. Hansen, Innovation in the pharmaceutical industry:
trated resources and strong collaboration.
62 63
Cost of development up to market readiness Time between the emergence of the pathogen and the
In $ millions availability of a vaccine in the United States
New estimates of R&D costs, Journal of Health Economics, 47 (2016), 20–33.
2’558
2’500 Typhoid fever 1884–1989
Meningitis 1889–1981
2’000 Whooping cough 1906–1948
Polio 1908–1955
Zika fever 1947–ongoing
1’500
Chickenpox 1953–1963
1’044 Measles 1953–1995
1’000 AIDS 1963–ongoing
Hepatitis 1965–1981
500 413 Diarrheal disease 1973–2006
179 Ebola 1976–2019
COVID-19 Jan.–Dec. 2020
0
1880 1900 1920 1940 1960 1980 2000 2020
1970 – 1980 – 1990 – 2000s –
early 1980s early 1990s mid 2000s mid 2010sInterpharma | Health Panorama 2021 Leading in research and development
The private sector finances most Most research and development
of the research and development in the private sector is financed by
carried out in Switzerland pharma
In 2019, a total of CHF 22.9 bn was invested in Switzerland’s Each year, the private sector invests CHF 15.5 bn in Switzer-
position as a research hub. land’s position as a research hub. The pharma industry is the
largest private investor, accounting for 33% of investments.
Of these investments, 67.5% came from the private sector. The
pharma sector was the most important investor, accounting for The importance of pharma warrants even greater acknowledg-
one-third of private-sector research expenditure. ment, because a large proportion of the labs and research insti-
tutions are also financed through external research contracts
The universities are the second-largest investor in research and that fall under “research and development” in the sector.
development in Switzerland accounting for 28.9% of research
expenditure. Further important research industries are the ICT and machine
engineering sectors. The chemicals sector accounts 3% to the
Swiss research hub.
64 65
Source: Federal Statistical Office (2021), Research and Development (R&D) in Switzerland, 2019.
Source: Federal Statistical Office (2021), Research and Development (R&D) in Switzerland, 2019.
Total research and development expenditure Research and development expenditure in the private sector
2019 2019
2.7% 0.9%
28%
28.9% 33%
22’884 15’500
CHF millions CHF millions
(100%) (100%)
3%
67.5%
11%
13%
11%
Pharma Research and development ICT Machinery Chemicals
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