SWISS DRUG MARKET SEEN SLOWING; GENERICS UPTAKE RISING

New industry data indicates that a slowdown in Switzerland's drug market is taking hold. At manufacturer prices, sales rose 4.5% in 2004, compared to a 9.7% rise in 2003. In the first half of this year sales increased just 2.1%, and over-the-counter drugs actually fell 0.3% to CHF315mn (US$254.67mn) on a year-on-year comparison.

Industry observers have blamed the results on a drop in prices as the market aligns more closely with European Union (EU) price levels. In the past, Swiss medicines have been more expensive than elsewhere in Europe, with the country frequently accused of being a so-called "price island." Reports also claim that Swiss consumers with insurance have changed their usual buying habits.

However, generics have bucked a trend for reimbursable products, where growth declined from 8% to 4.3% in the first half of the year. According to the data, generics sales were 29.8% higher in 2004, and 33% higher year-on-year in the first half. The sector looks set to take a bigger slice of the US$4.3bn prescription market, as the government attempts to cut costs. Generics accounted for 7.1% of all drugs reimbursed by Swiss health funds in the first six months of this year, compared to 5.5% in the same period in 2004.