pts20250801023 in Business
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United States Relations – CH (Source: ISTOCK) |
Basel (pts023/01.08.2025/12: 15)
39% customs taxes decreed by the United States bring a considerable economic threat to Switzerland. Although pharmaceutical products are temporarily exempt, the decision made yesterday by the United States government on the prices of the “most favored nation” endangers the global supply of innovative drugs. Pharmaceutical companies practicing research in Switzerland are also concerned, as well as the supply of Switzerland. Regardless of the rest of the process, Switzerland must focus on the improvement of its own framework conditions. Significant reforms are needed to strengthen Swiss pharmaceutical place, improve patient access to drugs and ensure the maintenance of investments in the research and development of innovative drugs.
It is with great concern that Interpharma, the association of pharmaceutical companies practicing research in Switzerland, learns of the decision of the United States government to impose customs duties of 39%. For Switzerland, the time is serious. Admittedly, pharmaceutical products are currently exempt from customs taxes, but by its decision yesterday on the “most favored nation prices”, the US government endangered the global supply of innovative drugs.
The decree provides, among other things, the introduction of a preferential clause which aligns the prices of medicines in the United States on the lowest prices applied in economically comparable countries. Switzerland is therefore risking a serious supply problem: companies will be forced to focus on the markets that generate the biggest turnover. With its share of 0.5% of the world market, Switzerland will not be part of it.
There must be important reforms
There are now important reforms to strengthen Swiss economic and particularly pharmaceutical place, improve patient access to drugs and ensure the maintenance of investments in the research and development of innovative drugs. Pursuing dialogue and negotiations with the United States is of great importance for Switzerland in order to reduce general customs duties and avoid the introduction of specific taxes for pharmaceutical laboratories. In addition, to ensure the supply of vital drugs in different countries, the price fixing systems must be adapted to the international level to the new reality of the most favored nation. The result of interviews and negotiations remains to be seen.
The decision of the American administration makes even more urgent for Switzerland a time of reflection before implementation of regulatory projects as well as the modernization of the price fixing system. Indeed, the Swiss system for fixing the price of drugs is obsolete and no longer corresponds to the current situation: it creates inappropriate incentives, lengthens the care process and endangers the access of the patients. Concrete proposals for industry have long been on the table. It is also high time to launch a strategy for the life sciences. Political circles and authorities to implement these proposals without delay.
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