Search Here

Deals aimed at lowering drug prices in the United States could cause higher prices for new medicines in Switzerland, according to the head of Swiss drugmaker Roche.

The warning comes after Washington announced agreements with major pharmaceutical companies to cut prices for medicines sold to low-income Americans through the Medicaid program.

Roche CEO Thomas Schinecker said the US government wants wealthier countries to pay more for new drugs so that the cost of developing future treatments is shared more evenly.

He explained that while the deals are designed to help American patients, they may shift some of the financial pressure to countries like Switzerland, where average incomes are higher than in the United States.

According to EconomicTimes, under the agreements announced Friday, drugmakers, including Roche's US unit Genentech, will reduce prices on certain medicines sold through Medicaid.

The White House said the move would stop other countries from benefiting too much from US-funded drug innovation by using strict price controls. Instead, Washington wants richer nations to contribute more based on their economic strength.

Schinecker said the US could use a country's gross domestic product per person as a guide when setting future drug prices.

If a country's GDP per capita is higher than that of the United States, the expected price of new medicines would also be higher.

Because Switzerland ranks above the US by this measure, it could face higher prices for drugs launched in the future.

US Pricing Rules May Push Up Swiss Medicine Costs

Schinecker stressed that people in Switzerland would not see immediate changes. Medicines already on the market would stay the same price.

However, new drugs introduced in the coming years could gradually become more expensive as this pricing system takes effect. Schinecker said the process would happen slowly, one product launch at a time.

Swiss lawmakers have raised concerns about what higher medicine prices could mean for patients and the healthcare system.

At the same time, the pharmaceutical industry plays a major role in Switzerland's economy, supporting jobs, exports, and tax income.

Schinecker warned that if Switzerland refuses to accept higher prices for new treatments, companies may delay bringing those medicines to the country.

Several nations, including Denmark, Germany, France, Britain, Italy, Japan, Canada, and Switzerland, are being used as reference countries for US drug pricing decisions, Reuters reported.

Roche is already in talks with these governments about how the changes could work in practice.

The pricing issue is also expected to come up in discussions between Switzerland and the United States as they work to formalize a deal reached last year to lower US tariffs on Swiss goods.

Tags

Switzerland, US