Switzerland as a pharma hub

The pharmaceutical industry is Switzerland’s economic engine

With exports to the tune of CHF 105.5 billion and accounting for 40.5 percent of total exports, the pharmaceutical industry is Switzerland’s most important export sector. With a direct share of 5.8 percent of gross domestic product (GDP), it is one of the most important private sectors in Switzerland and makes an above-average contribution to the country’s prosperity. Around 50,600 people are employed in the pharmaceutical industry in Switzerland. The industry obtains products and services such as machinery, chemical substances, cleaning and security staff, insurance services and energy as part of its activities – creating an additional 250,200 jobs for people in other sectors.

Optimal framework conditions remain essential for a successful and internationally competitive pharmaceutical location. However, Switzerland’s attractiveness as a location is coming under pressure from many sides. Growing geopolitical uncertainty, uncertainties regarding bilateral agreements with the EU as well as rising bureaucracy and regulatory costs are endangering Switzerland’s competitiveness.

Strengthening political stability and legal certainty

Political stability and legal certainty are important traditional strengths of Switzerland as a pharmaceutical location. Innovative industries with a long investment horizon are particularly dependent on planning security and legal certainty. When it comes to attracting new companies or investing in a location, political stability is an important factor in opting for a location. In recent years, however, there has been an erosion of stability, which is also reflected in relevant international indices. It is important to engage in a transparent dialog with society and politicians about the importance of the pharmaceutical industry for Switzerland and the necessary framework conditions for the future.

Secure access to export and import markets

An internationally networked and export-oriented country like Switzerland is dependent on functioning trade relations and open markets. In 2024, around 46 percent of Swiss pharmaceutical exports went to the European Union, making the EU the most important market for pharmaceutical products. The United States accounts for 28 percent of exports and is therefore the single most important buyer country. Exports to the US have more than doubled from 12.8 percent over the past 20 years or so.

Create an attractive environment for investment

Switzerland still has a competitive fiscal environment. However, international tax competition is not over. Switzerland must remain flexible and pragmatic domestically and adapt to the new competition rules as best as possible.

Direct investment in Switzerland from abroad has been declining since 2017. Since then, however, there has been a significant outflow of funds. These outflows threaten jobs, innovation, tax revenues and the international competitiveness of Switzerland as a location for pharmaceuticals. Investment in start-ups is also declining. While almost half of all investments in 2017 went to start-ups in the biotech sector, the figure fell to 31 percent in 2024. This indicates declining attractiveness in this area.