Generic drug sales surge
The generic drugs market in Switzerland grew by almost 40 per cent in the first half of 2003, compared with the same period last year.
Figures published by VIPS, a Swiss-based umbrella group representing pharmaceutical importers, showed that the industry grew to SFr66.2 million ($47.25 million).
VIPS said demand for generics grew as a number of popular and profitable drugs, in particular anti-depressants, saw their patents expire.
Despite the dramatic increase in sales growth, generics represented only a small fraction of the total SFr2 billion ($1.43 billion) spent on all pharmaceuticals during the first half of 2003.
“Not enough generics are being sold, particularly by doctors and hospitals. There is less of a profit margin on generics,” said Reinhard Kämpf, head of pharmaceuticals, at the Swiss Federal Office for Social Security.
Sales for the total drug market grew by a healthy 8.5 per cent – an increase in line with growth rates over the past five years.
An ageing population, combined with the availability of new, more expensive drugs, were considered the main reasons behind the increase.
Insurance costs
About SFr1.5 billion worth of drugs were covered by health insurance providers, representing a jump of some ten per cent.
Insurance companies were forced to pay out more as new medications were added to the list of drugs they are obliged to cover.
Increased costs by insurance companies are not expected to affect premiums, at least in the short term.
“The figures released for the first half of 2003 will have no impact on health insurance premiums for next year,” Kämpf said.
Most drugs were purchased at pharmacies, accounting for a little more than half of the market, with sales of SFr1.08 billion – a 6.2 per cent increase on the first half of 2002.
Doctors dispensed SFr448 million worth of drugs and hospitals sold SFr366 million, representing increases of more than 11 and 13 per cent respectively.
swissinfo with agencies
Generics are cheap versions of drugs that have lost patent protection.
The generics market represents big business for governments looking for ways to combat rising health costs.
But many pharmaceutical firms are steering clear because the returns are so much lower than on patented drugs.
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