Swiss drug market slow down in 4th-qtr 2008

Switzerland's pharmaceutical market has experienced some of the effects of the global recession, with a marked slow down in growth for  fourth-quarter 2008. The most dramatic evidence came in the form of an  11.3% drop in exports for the month of November, compared with the same  period in 2007. The figures were released by two of the country's trade  associations, the Interpharma and the SGCI Chemie Pharma Schweiz, which  respectively represent Swiss-headquartered research-based drugmakers  and a broader association of chemical and pharmaceutical firms,  including the local subsidiaries of foreign companies.

The Swiss drug market expanded 5.3% in 2008, from 4.48 billion Swiss  francs ($3.86 billion) to 4.72 billion francs at manufacturing prices,  the Interpharma said. However, this compares with a 6.5% growth rate in  2007. New compounds (including new formulations or doses) introduced to  the market since 2006 experienced a rise of 6.4% versus a 1.1% fall for  older products. The main cause of this, the drugmakers' group argues, is  the "extraordinary wave" of price cuts imposed on March 1, 2008,  resulting in savings of 93.0 million francs to payers. Another series of  price cuts in early 2009 is expected to impact the current year's  turnover.

The share of generic drugs reimbursed by insurance funds was up 10.1%.  Switzerland maintains a high proportion of branded off-patent medicines,  with non-branded versions only accounting for 32% of the post-patent  market.