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Basel is home to Roche and Novartis – two of the largest pharmaceutical companies in the world. <\/p>\n
Keystone \/ Georgios Kefalas <\/p>\n
When Switzerland\u2019s two biggest pharmaceutical companies are doing well, that\u2019s usually a reason to celebrate. Swissinfo journalist Jessica Davis Pl\u00fcss examines why Swiss politicians and industry leaders are instead calling for urgent reforms to keep the country attractive to pharma.\n<\/p>\n
This content was published on <\/p>\n
February 13, 2026 – 09:00\n<\/p>\n
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\n I report on the Swiss pharmaceutical industry and healthcare topics such as access to medicine, biomedical innovation, and the impact of diseases like cancer.
\nI grew up just outside San Francisco and studied international affairs with a focus on development economics and healthcare policy. Prior to joining SWI swissinfo.ch in 2018, I was a freelance journalist and a researcher on business and human rights. <\/p>\n
Last year was a good year for Swiss pharma. Roche\u2019s sales rose 7% (at constant exchange rates) to CHF61.5 billion ($79.8 billion), driven by strong demand for drugs for multiple sclerosis, eye diseases and Haemophilia A. With ten new molecules entering late-stage clinical trials, 2025 was \u201cvery much a record year for Roche\u201d, said CEO Thomas Schinecker at the company\u2019s annual results media conference in January.<\/p>\n Its cross-town rival, Novartis, was also upbeat about 2025, with sales of key brands \u201cwell above expectations\u201d, according to its annual reportExternal link<\/a>, enough to boost CEO Vas Narasimhan\u2019s compensation by 30%. Even with generic competition expected to dent sales in 2026, Novartis\u2019 US shares were trading at all-time highs in early February.<\/p>\n They are now the two most valuable companies in Switzerland, according to a global ranking by consulting firmExternal link<\/a> EY. Roche rose to 31st from 46th with a market capitalisation of $353.4 billion, up more than 50% on the previous year. Novartis rose from 66th to 53rd with $265.2 billion, replacing food giant Nestl\u00e9 as the second-most valuable Swiss company.<\/p>\n One would assume all this good news for Switzerland\u2019s largest companies would be good news for Switzerland. The two companies are among the country\u2019s biggest taxpayers, employ some 25,000 people in the country and support thousands of jobs indirectly.<\/p>\n The biopharma industry as a whole, which includes thousands of smaller companies, was responsibleExternal link<\/a> for 40% of the country\u2019s economic growth\u00a0over the last decade. It generates around 7% of GDP, and over 40% of Swiss exports, making it the most important export sector.<\/p>\n But instead of celebration, Swiss politicians and industry leaders are racing to enact what they see as urgent reforms to retain Switzerland\u2019s reputation as a pharma powerhouse.<\/p>\n \n More<\/p>\n More <\/p>\n Healthcare innovation\n <\/p>\n US trade deal forces reckoning for Swiss pharma powerhouse <\/p>\n This content was published on <\/p>\n Nov 18, 2025 <\/p>\n Swiss pharma made massive investment promises to the US that are fueling anxiety about the industry\u2019s future in Switzerland. <\/p>\n <\/p>\n Read more: US trade deal forces reckoning for Swiss pharma powerhouse In January the Swiss government convened a \u201clife sciences location\u201d working groupExternal link<\/a> to examine ways to \u201ccreate the best possible framework conditions\u201d for the industry. A few days later, the Basel-City government hosted an eventExternal link<\/a> on the sidelines of the World Economic Forum in Davos to remind stakeholders it\u2019s a global anchor of the life sciences industry.<\/p>\n \u201cSwitzerland is at a crossroads,\u201d wrote the industry association Interpharma in a press releaseExternal link<\/a> on January 8. \u201cGeopolitical developments and new international rules are severely testing the country\u2019s competitiveness, innovative strength, and attractiveness.\u201d<\/p>\n Mounting competition<\/p>\n Concerns about Switzerland\u2019s attractiveness aren\u2019t entirely new. The country has faced mounting competition<\/a> from places like The Netherlands and Ireland, which have sweetened incentives for global multinationals setting up on their shores.<\/p>\n The Covid-19 pandemic heightened the pressure as countries became more aware of the value pharma companies bring in terms of long-term investment, high-paying jobs and access to technology.<\/p>\n Switzerland has relied on high salaries and good working conditions to attract talent, but that has also made it an expensive place to do business. Countries like Spain, Saudi Arabia<\/a> and SloveniaExternal link<\/a> are all positioning themselves as lower-cost alternatives. Several countries like Germany and DenmarkExternal link<\/a> have created national pharmaceutical industry strategies with tax breaks for research-intensive industries, big investments in universities and start-ups, and speedy regulatory processes.<\/p>\n \n More<\/p>\n More <\/p>\n Swiss pharma\u2019s big bet on Slovenia <\/p>\n This content was published on <\/p>\n Feb 9, 2024 <\/p>\n As Swiss companies Novartis and Sandoz shift to complex, expensive medicine, they are increasingly dependent on the tiny Balkan nation of Slovenia. <\/p>\n <\/p>\n Read more: Swiss pharma\u2019s big bet on Slovenia In the latest Global Industry Competitiveness IndexExternal link<\/a> 2025 by BAK Economics, commissioned by the Swiss scienceindustries trade group, Switzerland dropped one place to third behind the US and Ireland. It tied Denmark, home to Novo Nordisk, maker of blockbuster weight-loss drug Wegovy.<\/p>\n Switzerland also now has to contend with China \u2013 a large market that has become a major source of biotech innovation. In 2024, the country ran nearly\u00a0one-third of the world\u2019s clinical trialsExternal link<\/a>, up from 5% a decade ago. Both Roche and Novartis now have major R&D facilities in the country. Last May Roche announcedExternal link<\/a> it was investing 2.04 billion Chinese yuan ($282 million) to create a new biomanufacturing hub in Shanghai.<\/p>\n Then there\u2019s US President Trump and his threats of tariffs and demands for lower drug prices. Roche and Novartis agreed to invest a combined $73 billion (CHF58 billion) over the next five years, with the aim to produce all key drugs for US patients on American soil. In December, they were among nine companies that signed contracts with the White House to lower prices for new drugs in the US.<\/p>\n These deals helped to avert tariffs on pharmaceuticals but their size and the speed with which they were announced are a reminder of how much weight the US market \u2013 in terms of both volume and high prices \u2013 carries.<\/p>\n \u201cThe US and China are very strong economically, and they use their economic power in order to make sure that there are more investments into their economy,\u201d said Schinecker. \u201cAs a player that\u2019s global, we have to invest in these markets.\u201d<\/p>\n With a population of just 9 million, Switzerland doesn\u2019t have the same kind of leverage. Over the last decade 40% of Roche capital and R&D investments flowed to the US, which accounted for 47% of sales in 2025. The company intends to raise the US share of investment to 50%. Switzerland received nearly a third of the total investment over the same period but accounts for just 1% of sales.<\/p>\n + Timeline: how US President Trump is upending pharma<\/a><\/p>\n Home-grown pressure<\/p>\n As if the external pressure isn\u2019t enough, Switzerland is dealing with its own set of domestic challenges. National funding for science and research is facing potential cutsExternal link<\/a> as part of government austerity measures. Bilateral deals with the EUExternal link<\/a> are awaiting sign-off from parliament \u2013 and Swiss voters \u2013 creating uncertainty about access to the EU market. An initiative to cap the Swiss population at 10 million will be up for a nationwide vote<\/a> in June. If it passes, it could restrict access to talent from abroad.<\/p>\n The industry is also unhappy about Swiss implementation of the OECD minimum corporate tax rate of 15%, which was approved by voters in 2023. Roche said it will pay CHF155 million more taxes in 2025 because of the higher rate, although some of this will flow back to it in the form of industry incentivesExternal link<\/a>. Meanwhile, the US and China are showing no signs of adopting the tax rate.<\/p>\n There\u2019s also the topic of drug prices, which the industry argues are too low in Switzerland, and which have led to lengthy negotiations with the Federal Office of Public Health. Trump\u2019s demands that prices of new drugs be tied to those in Switzerland and other industrialised countries are fueling anxiety at a time when Swiss health authorities are trying to curb healthcare costs.<\/p>\n \n More<\/p>\n More <\/p>\n Drug pricing\n <\/p>\n How a clash with Roche exposed cracks in Swiss drug pricing system <\/p>\n This content was published on <\/p>\n Sep 19, 2025 <\/p>\n Switzerland\u2019s new process to speed up patient access to the latest drugs hit its first major hurdle in a clash with Roche. <\/p>\n
\n More from this author <\/a><\/p>\n
\n English Department <\/a><\/p>\n![\"Roche](\"https:\/\/www.europesays.com\/ch\/wp-content\/uploads\/2026\/02\/627260095_highres.jpg\")
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\n <\/a><\/p>\n![\"Novartis\"](\"https:\/\/www.europesays.com\/ch\/wp-content\/uploads\/2026\/02\/2m8ckx2-data-49174654.jpg\")
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\n <\/a><\/p>\n![\"Roche](\"https:\/\/www.europesays.com\/ch\/wp-content\/uploads\/2026\/02\/1770974590_716_627308345_highres.jpg\")
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