28.11.2024 – 08:00
Mepha Schweiz AG
Basel (ots)
The price cuts ordered by the Federal Office of Public Health, which will come into force on December 1, 2024, will increase pressure on the already advantageous prices of generics, which will further intensify supply difficulties. Mepha, the main supplier of medicines in Switzerland, is calling for better state framework conditions in order to guarantee affordable basic care in the long term.
In Switzerland, generics are 20 to 70% more advantageous than the corresponding originals.[1] In 2023, generics will save 460 million francs on healthcare costs.[2] With a market share of 42%, Mepha is the leading supplier of generics in Switzerland. No other brand of medicine is used as often in Switzerland as rainbow medicine.[3] During the last twelve months (Nov. 2023 – Oct. 2024), doctors and pharmacies prescribed or dispensed approximately 23 million packages of generic Mepha.[4] On average, five Mepha generics were used per household.[5] Generics now occupy a central place in basic healthcare in Switzerland. However, the supply of medicines is increasingly under threat.
Downward price spiral worsens supply shortages
Over the past 20 years, generic price reductions ordered regularly by the authorities have resulted in, among other things, Mepha’s antibiotics and analgesics, or its generics for the treatment of cancer, which are also used in pediatrics, must be offered at a price sometimes lower than that of a pack of chewing gum. Today, 10% of Mepha generics have a factory price (PF) of less than 5 francs and 25%, a PF of less than 15 francs.[6] The price cuts which will come into force on December 1, 2024, which will in particular increase the pressure on already advantageous generics, will have the consequence that the increasing production and distribution costs due to inflation can no longer be covered and that prices will fall below the break-even point. Mepha expects shortages to worsen this winter due to current price cuts. Patients will increasingly be forced to resort to more expensive originals. In countries like Germany, price pressure has already led to an increasing number of generics disappearing from the market because their production is no longer profitable. This scenario also threatens Switzerland.
The framework conditions set by the authorities must be realistic
On the one hand, health authorities in Switzerland have been imposing price reductions on generics for years. On the other hand, compared to other European countries, they impose on generic suppliers significantly higher or non-harmonized requirements in terms of quality, safety and suitability, compliance with which is linked to very high costs. Thus, in Switzerland, generics must always be offered in all dosages, pharmaceutical forms and packaging sizes, including those that are in low demand, such as the corresponding originals. This contradiction gives generic suppliers a hard time. Andrej Salát, General Manager of Mepha and Teva in Switzerland, calls for Swissmedic and the Federal Office of Public Health to take greater account in their decisions and requirements of the central role of generics in providing affordable basic care. According to him: “In the future, in order to be able to offer a stable long-term supply, it should be possible to adjust the prices of very advantageous generics upwards due to the increase in production and distribution costs due to to inflation. There must be no further price reductions for generics subject to a compulsory stocking obligation imposed by the authorities.” With its position as market leader, Mepha assumes a great responsibility in basic care in Switzerland.[7] Mepha hopes to continue in this role in the future.
About Mepha and Teva in Switzerland
Together, Mepha Pharma SA and Teva Pharma SA are among the leading pharmaceutical companies in Switzerland. Mepha has been part of the international Teva Group – one of the world’s leading generic suppliers – since 2011. Mepha and Teva are headquartered in Basel and currently employ a total of 170 people. The Mepha and Teva product line includes more than 300 products intended for the treatment of numerous diseases. It has 270 generics, biosimilars, over-the-counter drugs, medical devices and originals for the treatment of diseases of the central nervous system, respiratory tract and cancer. Mepha and Teva products are distributed by pharmacies, dispensing physicians, drugstores and hospitals.
References available on request.
[1] FOPH information sheet 22.9.2023; (accessed 08.11.24)
[2] bwa Consulting Report 2023; Sparbeitrag durch Generika; https://www.intergenerika.ch/fr/generiques/marche (accessed 08.11.2024)
[3] IQVIA Pharma Panel, MAT October 2024 last consulted
[4] IQVIA Pharma Panel, MAT October 2024
[5] Federal Statistical Office, https://www.bfs.admin.ch/bfs/fr/home/statistiques/population/familles/menages.html (accessed 08.11.2024)
[6] IQVIA Pharma Panel, MAT November 2024
[7] IQVIA Pharma Panel, MAT October 2024
Contact:
Christoph Herzog, Head of Brand & Communications, Mepha Suisse SA, telephone 061 705 43 43, [email protected]
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