Predominantly homemade supply problem

The Federal Council announced yesterday that the economic supply situation in the ‘therapeutic products’ area is now classified as problematic by the Federal Office for National Economic Supply due to the current tense drug supply situation. A task force will examine short-term measures. In addition, the projects already underway to ensure long-term security of supply will be continued.

The current situation reveals an at least partial dependence on foreign countries for the supply of medicinal products, although it should be noted that the situation in Switzerland is still better than in many European countries. If this dependence is to be reduced, the framework conditions must be made more attractive again. These have steadily deteriorated in recent years, which is partly responsible for the current supply problems, in addition to the pandemic.

Specifically, the industry is increasingly confronted with excessively cost-driving regulatory requirements, while at the same time remuneration is constantly falling. The prices currently granted are often no longer sufficient to cover the large expenses. This state-driven pricing policy has virtually forced the partial dependence on foreign countries, but at least on the part of state bodies it has been consciously accepted.

Improving the framework conditions instead of state activism

In view of the amendments to the Health Insurance Ordinances (KVV and KLV) proposed by the Federal Office of Public Health (FOPH), there is still justified concern that supply problems will increasingly affect new therapies. That is why scienceindustries rejected this revision outright. The framework conditions cannot be allowed to deteriorate continuously (increasing requirements in terms of licensing and market monitoring, often restrictive reimbursement conditions and continuously falling prices coupled with simultaneous inflation) without this having consequences.

What is needed now at long last are better framework conditions, not continued state activism. The situation will certainly not improve with the relentless focus on the principle of cost-effectiveness. The pharmaceutical industry is committed to a financially viable healthcare system and has made considerable efforts to reduce costs in this direction in recent years. However, if this path continues to be followed, supply bottlenecks will hardly decrease: drug prices cannot be continuously reduced!

Security of supply requires all players to act

The industry also contributes to the stabilisation of supply by maintaining compulsory stocks. However, in our view, these compulsory stocks should not be expanded indiscriminately. In some cases, an increase in compulsory stockpiling is worth considering; however, a general expansion of the compulsory stockpiling regime should be rejected, because it would result in excessive administrative and financial costs. Also, an indiscriminate intensification of compulsory stockpiling can lead to production bottlenecks for other products because production capacities are tied up one-sidedly.

Likewise, the financing of compulsory stockpiling must be discussed, because so far this has been done solely by industry. At the latest in the event of a possible expansion of this, industry will no longer be able to bear these costs alone, all the more so as drug prices have been and are to be continuously reduced. If the industry continues to bear these costs alone, an intensified compulsory stockpiling requirement may even lead to increased market withdrawals because the associated additional costs would further reduce the often already poor profitability of the products. At most, the possibility of expanding stocks in healthcare institutions (reserve stocks at hospitals, doctors, pharmacies, etc.) should be examined in order to increase the stock ranges in these institutions.

Targeted monitoring thanks to digitalisation

Finally, it should also be noted here that targeted monitoring of medication could reduce the disposal of unused drugs. However, this would require significant progress in the digitalisation of the healthcare system, and quickly, because Switzerland has fallen behind in this area. It is missing out on significant optimisation potential in the efficient provision of healthcare services.