Business Association Chemistry Pharma Life Sciences

Dossiers - Reforms in the healthcare sector

Proposals for a secure supply of medicinal products

23.08.2024

Ensuring a reliable supply of medicinal products is of central importance for the health of the population and the stability of the healthcare system. Although Switzerland is a leader in the chemical-pharmaceutical industry, there are also shortages in the availability of medicines in this country. The cross-association position paper highlights the background to the problem and suggests possible solutions.

The supply bottlenecks for medicines are the result of a complex economic interplay: the cost pressure exerted by the Federal Office of Public Health (FOPH) jeopardises the economic viability of many products. Price pressure is forcing the industry to relocate production facilities abroad, which in turn leads to consolidation and the crowding out of suppliers from the market. This in turn increases dependencies and makes supply chains vulnerable. Unforeseeable external factors, such as the COVID-19 pandemic, can further exacerbate the situation.

Reporting system and compulsory stocks
The supply of medicines is basically ensured by a reporting system and compulsory stocks prescribed by the federal government and financed by the chemical-pharmaceutical industry. However, the ongoing expansion of the reporting requirement is leading to considerable additional work for pharmaceutical companies, which is why the current reporting system must be replaced by an automated and risk-based reporting system financed by the federal government. Moderate compulsory stocks along the entire distribution chain can strengthen security of supply. However, the cost-bearing system needs to be reformed, as state-imposed pricing means that these costs cannot be passed on, as is the case with other products. The federal government should therefore contribute to the costs of compulsory stocks.

Attractive location Switzerland
The COVID-19 pandemic has shown that supply and production chains will continue to be international in the future and that it is unrealistic for Switzerland to be self-sufficient. As an internationally recognised pharmaceutical location, the local production site must nevertheless be strengthened by attractive framework conditions in chemicals legislation, energy supply and secure access to skilled workers. In addition, a diversified product range ensures security of supply. This is safeguarded by investments in Switzerland as a research and development location, strong protection of intellectual property and fair remuneration for research.

Access to innovative therapies
Another aspect of security of supply is efficient and unbureaucratic access to innovative therapies. Early approvals in Switzerland require harmonised requirements for the data to be submitted, progressive implementation of scientific developments and a solution-oriented dialogue on the part of Swissmedic. In addition, a reimbursed innovation access (RIZ) would give patients rapid access to new treatments and give both the FOPH and the pharmaceutical companies more time for price negotiations.

Federal Council decision on shortages of medicinal products
On 21 August 2024, the Federal Council discussed a package of measures and issued various implementation mandates. Certain proposals could be effective, but others are viewed critically by scienceindustries, such as the expansion of parallel imports. A group of experts is to develop additional measures by the end of 2025 with the aim of further improving security of supply. It is important to note that these measures must be coordinated between the federal government, industry and other stakeholders. Only in this way can the long-term supply of pharmaceuticals be guaranteed.

In the cross-association position paper, scienceindustries has developed an analysis and specific solutions for strengthening security of supply and ensuring the broad availability of medicines. In addition, scienceindustries is currently coordinating issues and positions between the pharmaceutical associations on the question of financing compulsory pharmaceutical stocks.

Conclusion
Securing the supply of pharmaceuticals requires a coordinated effort by all stakeholders. Close cooperation between the state, industry and other relevant interest groups can ensure that the population has access to a wide range of therapies and guarantee the security of supply in the long term. The framework conditions must be improved to secure the supply of pharmaceuticals to the Swiss population in the long term.


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