Trump is only the loudest problem Swiss pharmaceutical industry is being overtaken
The latest ranking of the most competitive pharmaceutical locations puts Switzerland in third place, down from second place last year. The industry association is therefore calling for better framework conditions from Swiss politicians.
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- Switzerland has fallen from second to third place in the new pharmaceutical competitiveness ranking and is increasingly losing its innovation leadership.
- The USA once again leads the ranking, while countries such as Denmark, China and other European countries are catching up - partly by subsidizing the industry.
- The industry association Scienceindustries is calling for better framework conditions for research and specialists as well as less regulation.
The pharmaceutical industry is one of the pillars of the Swiss economy. Almost half of exports are products from the chemical and pharmaceutical industry.
However, Switzerland is under pressure as a pharmaceutical location. A new ranking by Scienceindustries, the association for this sector, puts Switzerland in third place.
The report assesses the competitiveness of the countries with the largest pharmaceutical companies. A year earlier, Switzerland was still in second place, sharing its position with Denmark - the home country of Novo Nordisk and thus of the weight loss drug Wegovy.
The USA is at the top for the second time in a row. And it has extended its lead over the other locations, write the authors of the report. In terms of innovation in particular, the US pharmaceutical industry is stronger than any other location.
Ireland has overtaken Switzerland
Switzerland was overtaken by Ireland, which has the highest productivity of all pharmaceutical locations. "The main reason for this is an attractive tax policy," analyzes the report. Ireland has been attracting international companies with particularly low corporate taxes for many years.
"Switzerland's position in 'innovation and technology leadership' has deteriorated. Other countries have caught up strongly here," the report states.
What's more, the competitiveness of the Swiss pharmaceutical industry has been declining for five years, study author Michael Grass is quoted as saying in the "Aargauer Zeitung".
The fact that this relative decline began long before Donald Trump took office for the second time shows that his economic policy is not the only reason why Swiss pharmaceutical companies are coming under increasing pressure from competitors on the global market.
Association makes demands on politicians
The home country of pharmaceutical companies Roche, Novartis and Co. is facing competition from other European countries and China. Various countries are trying to attract innovative pharmaceutical companies, promoting research and subsidizing the sector with billions of euros or renminbi.
In a press release, Annette Luther, President of Scienceindustries, describes the report as a warning signal for Switzerland. In response, she calls for a research and generally business-friendly environment in Switzerland, the promotion of education and skilled workers, the secure supply of infrastructure and the reduction of regulation in the sector. In the "Aargauer Zeitung", she also suggests a "flexible implementation of the OECD minimum tax".
"The result of this year's Global Industry Competitiveness Index 2025 is a warning signal for Switzerland," emphasizes Luther. Trump, the threat of tariffs and government-imposed price caps in the USA are the latest challenges, but by no means the only problem facing the Swiss pharmaceutical industry.
