Localization
Wenger Plattner / Switzerland
Key legal info on localization in Swiss Pharma. Prepared in association with Wenger Plattner, a leading law firm in Switzerland, this is an extract from The Pharma Legal Handbook: Switzerland, available to purchase here for GBP 99.
1. Are there any rules or regulations requiring and/or encouraging localization in your country? What is the legal framework defining these localization rules and policies?
No, there are none. Since Switzerland is one of the most important pharmaceutical research hubs in the world alongside the USA and its reputation extends well beyond Europe, it is not necessary to encourage localization. Accounting for a direct share of 5.4 percent of gross domestic product (GDP), the pharma industry is one of the most important sectors of the private economy in Switzerland. In 2017, the research-based pharmaceutical companies invested more than 6.5 billion Swiss Francs in research and development (R&D) in Switzerland, a figure that is almost twice the volume of the turnover achieved in Switzerland. Every Swiss Franc transferred from the Swiss healthcare system to the pharmaceutical industry is reinvested almost twice over in Switzerland. Some 46,800 employees generate 36 billion Swiss Francs in value added every year. A total of 254,100 jobs depend on the success of the pharmaceutical industry. With a 38% share of Swiss goods exports, the pharmaceutical industry is by far the most important export sector in Switzerland. The export revenues of around 88 billion Swiss Francs come mainly from European countries. However, the strongest growth in demand in recent years has come from North America and Asia. Due to the strong position of the Swiss pharmaceutical industry in the world market there are currently no rules or regulations requiring or encouraging localization in Switzerland.
2. Have there been any recent significant changes involving localization rules? If yes, when did they take place and what did they involve?
No, there are no localization rules in Switzerland (see question 1).
3. Is the process of obtaining a marketing authorization impacted by localization policies in your country? If yes, how so (what are the incentives received or the requirements)?
No, there are no localization rules in Switzerland (see question 1).
4. Is the pricing process for pharmaceutical products impacted by localization policies in your country? If yes, how so (what are the incentives received or the requirements)?
No, there are no localization rules in Switzerland (see question 1).
5. Is the reimbursement of pharmaceutical products impacted by localization policies in your country? If yes, how so (what are the incentives received or the requirements)?
No, there are no localization rules in Switzerland (see question 1).
6. Is the access to public or public tenders of pharmaceutical products impacted by localization policies in your country? If yes, how so (what are the incentives received or the requirements)?
No, there are no localization rules in Switzerland (see question 1).
7. Are import tariffs, importation and/or exportation permits, trade and/or taxation of pharmaceutical products impacted by localization policies in your country? If yes, how so?
No, there are no localization rules in Switzerland (see question 1).
8. Are there any other incentives or advantages offered by the current local localization rules in your country? If yes, what are they?
No, there are no localization rules in Switzerland (see question 1).
9. Are there discussions about the possibility of implementing localization policies in your country? If yes, what are the proposed reforms and when should they come into place?
No, since Switzerland is one of the most important pharmaceutical industries in the world alongside the USA and its reputation extends well beyond Europe, it is not necessary to encourage localization at this moment. However, growing tension within the relationship with the EU is leading to legal uncertainty. Switzerland needs to consolidate its bilateral relationship with the EU in the long term. The legal uncertainty is to a certain extent home-grown. Against the background of rising healthcare costs, calls to limit entrepreneurial freedom are bound to get louder. Therefore, it is even more important for the industry to send the right signals regarding the environment, social affairs and company management in the future.
