Swiss sales of generics jump following new legislation
The market share of generic drugs in Switzerland leapt seven points to 12% in 2006 following new legislation on the obligatory client copayment for medicines.
The market share of generic drugs in Switzerland leapt seven points to 12% in 2006 following new legislation on the obligatory client copayment for medicines.
In Switzerland, the patient's contribution to health insurance expenses is 10% of the price of a drug. Since 2006, this copayment has been increased to 20% for a branded off-patent medicine, while remaining at 10% for generic versions of the drug.
The difference was introduced to encourage patients to buy generics rather than off-patent branded products. In July 2006 the market share of generic products reached 12%, and has remained stable at this level.
The client copayment reverts to 10% for off-patent medicines whose price is adjusted to that of the corresponding generic products. The copayment then remains at 10% permanently with no further risk of doubling to 20%. Further price adjustments are therefore not necessary, even if generics prices continue to decrease.
The copayment measure has generated about CHF400m (Euro 250m) in savings. In 2005, pharmaceutical expenditure in the community represented 21% of the Swiss health insurance's total expenditure of almost CHF55bn (€34bn). Including the hospitals sector, expenditure on medicines accounted for 25% of the total.
In 2005, sales of the 30 best-selling medicines increased by 17% to CHF1.25bn (€780m), accounting for 30% of the total pharmaceuticals market. Of these 30 drugs, 10 saw their patent expire.