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The quarterly newsletter of scienceindustries, the Swiss Business Association Chemistry Pharma Life Sciences, keeps you informed about current economic and social issues.
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Innovations instead of prohibitions
Clear commitment to future-oriented agriculture
The decisive rejection of the two agricultural initiatives is welcome. It is a clear vote in favour of a productive, resource-efficient and sustainable economy and an important signal against bans on technology and ideas in Switzerland as a business location.
When it comes to plant protection products, politicians and administrators are now called upon to follow up with action and to restore the currently blocked approval processes to a scientific basis. These should be risk-based and also take into account the risks of non-application. Only with clear deadlines and transparent communication will agricultural companies be able to continue bringing innovative plant protection products to the Swiss market. This will also make it possible to meet the people’s desire for even more sustainability in food production.
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Climate policy
Proactive and effective climate protection
scienceindustries notes with regret the rejection of the CO2 law. Our member companies continue to advocate for proactive and effective climate protection and support the net-zero target 2050.
The rejection of the CO2 law means that there is now no reliable framework for Switzerland’s national climate protection activities. There is no continuity in the lawful basis for climate protection activities for small and medium-sized enterprises, who are also burdened with the CO2 tax. Rapid political discourse is now needed on the continuation of Switzerland’s climate policy, which also involves addressing any risks such as the increase in the cost of production and the threat to the security of electricity supply in Switzerland. Parliament must also immediately tackle the maintenance of the target agreement system.
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Research ban initiative
A clear sign of innovation
The aim of the initiative is to free Switzerland from animal and human experiments as well as all related products, services and teaching. Any and all experiments on animals and humans should be banned, as should the import of products for which animal and/or human experiments were done, such as medication.
scienceindustries is relieved to note that the Council of States unanimously recommended the rejection of the research ban initiative, which is expected to be put to a vote in November 2021. Like the Federal Council and the National Council, the small Chamber also finds the petition too radical. Switzerland would be cut off from medical progress and its status as a research location would be severely endangered. Knowing that there are still no alternatives for many animal experiments, it is not the right time to draw up an exit plan and thus endanger the future of research in Switzerland in vital areas.
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Institutional framework agreement
Measures needed to secure the bilateral approach
scienceindustries is disappointed at Switzerland’s unilateral termination of the negotiations for an institutional framework agreement with the EU. For the chemical and pharmaceutical industries, the current bilateral agreements are an important locational factor, and there are no prospects of an equivalent alternative.
scienceindustries believes that the negotiated institutional framework agreement could have secured access to the EU common market and thus Switzerland’s attractiveness as a business location. scienceindustries considers that immediate measures by the Federal Council are urgently needed in order to preserve the bilateral approach, further advance the expansion of market access and prevent the erosion of the existing agreements on market access as well as other locational advantages. In addition to foreign trade measures to cushion a more difficult access to the EU market, domestic reforms are particularly necessary. This should ensure that the decline in competitiveness can be absorbed by domestic policies. scienceindustries also supports the Federal Council’s intention to enter into a political dialogue with the EU on further cooperation. In the interest of Switzerland as a location for research and innovation, we also call for the rapid, unconditional release of the cohesion billion.
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Tax reform
International tax reform targets Switzerland's locational advantage
The OECD in Paris is working on the redistribution of corporate tax revenues. Countries such as Switzerland that invest their tax revenues heavily in education and good infrastructure are likely to be hit hard.
It is crucial for scienceindustries that Switzerland plays an active role in the drafting of the new provisions. The restructuring of corporate taxation may even give rise to new opportunities for Switzerland. scienceindustries is also firmly convinced that Switzerland has taken the right path with its OASI and tax proposal. A (not too) low general tax rate combined with internationally accepted solutions for promoting research activities (patent box and research & development deduction) is likely to be a promising way to secure Switzerland’s economic success.
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Abolition of tariffs on industrial goods
An end to unnecessary bureaucracy and old habits
Following the decision of the Federal Council to break off negotiations with the EU on a framework agreement, the abolition of customs duties on industrial goods is an important measure to ease the financial and administrative burden on companies.
As Switzerland only levies very low tariffs, the fiscal revenues are offset by excessive administrative costs. Tariffs on industrial goods place an unnecessary burden on consumers and industry. This reduces their competitiveness vis-à-vis foreign competitors. Tariffs have long since lost their original purpose of protecting domestic industry. In addition to cost savings on imported goods, the main arguments for abolishing customs duties include the simplification of the customs tariff structure and administrative relief. In addition, the complete abolition of tariffs on industrial goods will lead to the elimination of administratively complex customs procedures (e.g. processing, the procedure for tariff suspension).
During the autumn session of 2021, the National Council can increase the attractiveness of Switzerland as a business location. By voting in favour of the complete abolition of tariffs for industrial goods, it could send an important and correct signal to consumers, SMEs, even to all companies, and confirm its commitment to Switzerland as a centre of research, production and business.
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Patent protection for COVID vaccines
Suspension of patent protection for vaccines not productive
scienceindustries does not consider it productive to suspend patent protection for COVID-19 vaccines as this would endanger future innovations. The suspension would not lead to an increase in production or any other practical solutions to combat the global health crisis.
Bottlenecks mainly relate to the timely availability of production capacities, qualified workers, and raw materials. The focus on patents, however, is a distraction from the real challenges of expanding the production and distribution of COVID-19 vaccines. Instead, it is important to remove trade barriers, supply chain bottlenecks and the scarcity of raw materials and ingredients. The vaccines that have been approved to date are based on technologies that could be researched over many years thanks to good protection of intellectual property. This protection has enabled companies to collaborate quickly and efficiently and to share knowledge among researchers.
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Cost-reduction package 1b
Don't jeopardise patient safety and security of supply in Switzerland
scienceindustries is closely following the negotiations regarding the cost-reduction packages. This coming August, the Health Commission of the Council of States (SGK-S) will commence its detailed consultation on draft 1 of the first cost-reduction package (KP 1b). scienceindustries has taken a joint position with other pharmaceutical associations.
Together with the National Council, we reject the introduction of a reference price system and the right of health insurers to appeal against rulings on medication prices. Unlike the National Council, however, we do not want annual price reviews and it must be ensured that biosimilars are not treated on an equal footing with generics when it comes to substitution and price gap rules.
Of key importance for patient safety and security of supply is that the Council of States does not follow the National Council with regard to all its proposals (including Motion 19.3202) on the simplified import of medicinal products. Parallel imports of patent-expired medicines and generics are already possible, but for reasons of drug and patient safety, they can only be carried out if authorisation has been obtained from Swissmedic. According to the National Council, this important check should no longer be carried out if a medicinal product is imported from the EEA. However, this would mean that Swissmedic would no longer be able to monitor the market, with the result that more counterfeit products would reach Switzerland. Moreover, Swissmedic and Switzerland as a pharmaceutical hub would be significantly weakened. It would be dangerous and wrong to weaken Swissmedic without achieving noticeable savings for insured persons. This change would primarily benefit the middlemen. Dependence on these middlemen would also mean that Switzerland would lose its ability to plan and stockpile inventories.
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Pharma Cooperation Code (PCC)
Disclosure of cooperation between pharmaceutical companies and healthcare providers
For the sixth time, some 60 pharmaceutical companies active in Switzerland will disclose the benefits paid for advisory and other services to healthcare providers by 30 June 2021. This transparency is intended to promote confidence in the important cooperation between these actors.
The exchange between pharmaceutical companies and doctors, pharmacists, hospitals, research institutions and patient organisations is crucial in researching and developing new medicines and therapies. New therapies can only be developed and tested and existing therapies improved as part of an ongoing exchange of experiences. The coronavirus pandemic shows just how important this collaboration is: without a networked exchange of information and manifold cooperation between research, industry and health professionals, findings will be processed much more slowly and possible treatment approaches be clinically tested and made available to the population much later.
These diverse activities by healthcare providers deserve to be suitably compensated. In order to make these relationships more transparent to the public, a considerable number of pharmaceutical companies publish the compensation paid for such services in the previous year on their websites by 30 June at the latest. This makes the fees they have paid to healthcare professionals and organisations for their services transparent and interested parties can obtain an overview of these relationships. This initiative aims to further strengthen the trust placed in the healthcare and research sectors. In Switzerland, the Code Secretariat of scienceindustries is responsible for the supervision of the PCC.
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Revision of the Code of Civil Procedure (ZPO)
Right to refuse participation removes procedural disadvantages for Swiss companies
scienceindustries has always welcomed a right of in-house lawyers to refuse to participate in legal proceedings and, at the same time, has expressed its opposition to the introduction or extension of collective legal protection instruments. The dossier is now with parliament.
scienceindustries has long been calling for the protection of professional secrecy for corporate lawyers and has therefore always supported the parliamentary initiative 15.409. In future, under certain circumstances, these lawyers should be able to invoke a special right of refusal to participate in civil proceedings. This will finally eliminate procedural disadvantages for Swiss companies and their employees in foreign legal proceedings. Although the Legal Commission of the Council of States (RK-S) was convinced of the need for such an instrument, it proposed an inappropriate solution.
During the summer session, scienceindustries therefore supported the Federal Council’s motion in Article 160 eZPO, which was unfortunately rejected by the majority of the Council of States; a minority supported the Federal Council’s solution. The matter will now go to the National Council. scienceindustries has also always been opposed to the extension of the collective action and is very critical of the proposed group comparison. We therefore welcome the fact that no Council debate is currently taking place on this issue.
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SimplyScience Foundation
School class from Trogen wins Science on the Move Competition 2021
For the sixth time, the SimplyScience Foundation and Roche have organised the Science on the Move competition. The winner is class SF5 BC from Trogen Cantonal School.
This year’s edition of the “Science on the Move” competition organised by the SimplyScience Foundation and supported by Roche attracted 486 pupils from 25 classes at 19 high schools. On the final day, which was carried out virtually this time, a jury of experts from science, education and industry selected class SF5 BC of Trogen Cantonal School as the winner. The aim of the competition is to foster scientific curiosity, enthusiasm and teamwork among the participants. This year, the student teams were asked to design an innovative “Smart System.”
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Closer to home
New members elected to the Board of scienceindustries
Prior to the 2021 Annual General Meeting, Dr Thomas Früh, Bachem AG, Christoph Goppelsroeder, DSM Nutritional Products AG, Dr Frank Lehmann, Nestlé SA and Dr Felix Reiff, Bayer (Schweiz) AG have announced their resignation from the Board.
On behalf of the Board, the Chairman proposed the following persons for election to the Board:
- Dr Thomas Beck, DSM Nutritional Products AG
- Thomas Hauser, Nestlé SA
- Thomas Meier, Bachem AG
- Dr Axel Steiger, Bayer (Schweiz) AG
The voters elected the nominees as new Board members for the remainder of the term until 2022.
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scienceindustries is the Swiss business association for the chemical, pharmaceutical and life sciences industries. Its around 250 member companies generate more than 98% of their revenues abroad. As Switzerland's biggest export industry, this sector contributes 51.7% to total exports and almost 40% to private research expenses in Switzerland
Stephan Mumenthaler, Director
Marcel Sennhauser, Deputy Director and Head of Communications & Public Affairs
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