Business · Companies · 13 hrs ago
Swiss pharma deal could trade higher drug prices for tariff relief
Roche and Novartis have agreements with the US that exempt their drug exports from tariffs.
In return, they have agreed not to launch new medicines in the US at prices above those in comparison countries, including Switzerland.
The deals run until early 2029, and US pharmaceutical industry representatives warn that a 15% tariff could remain even under a future Democratic president.
They are urging Switzerland to consider an agreement like the one Britain made with the Trump administration.
Britain raised NHS prices for new medicines by 25% from April and secured a zero-tariff rate on pharmaceutical products until early 2029.
A Swiss government working group is due to present proposals by the end of the year, after which parliamentary health committees will consider them.
Higher Swiss drug prices could push up health insurance premiums, and any deal would also raise questions about US trade talks and whether voters could have a say.
Roche and Novartis have agreements with the Trump administration that exempt their US-bound drug exports from tariffs.
The companies agreed not to launch new medicines in the United States at prices higher than in comparison countries, including Switzerland.
Their agreements expire in early 2029, and US pharmaceutical industry representatives have discussed a similar arrangement with Swiss authorities.
A possible deal could involve higher Swiss drug prices in exchange for zero tariffs on pharmaceutical products.
Higher prices could increase health insurance premiums, and any proposal could face political debate or a public vote.
- Who
- Roche and Novartis have existing agreements with the Trump administration. US pharmaceutical industry representatives have discussed a possible deal with Swiss authorities.
- What
- A possible Swiss agreement could trade higher drug prices for tariff relief.
- When
- The existing agreements expire in early 2029. A federal working group is due to present a report by the end of 2026.
- Where
- Switzerland and the United States.
- Why
- US industry representatives say an agreement could provide planning certainty and help secure relief from tariffs.
US pharmaceutical industry representatives
Critics of a possible deal
Tariffs
US pharmaceutical industry representatives
Industry representatives argue that an agreement could help Switzerland secure tariff relief.
Critics of a possible deal
Critics warn against rushed measures.
Drug prices
US pharmaceutical industry representatives
The industry has called for higher prices for new medicines in Switzerland.
Critics of a possible deal
Critics raise concerns about the possible effects of price increases; the article says they could push health insurance premiums higher.
The United Kingdom agreed to increase its medicine prices, measured against GDP, in exchange for a zero-percent tariff on pharmaceutical products.
The UK government raised by 25 percent the price paid by the NHS for new medicines.
US pharmaceutical industry representatives spoke with Swiss authorities about a possible agreement.
A Swiss federal working group is due to present a report on measures to make Switzerland more attractive as a pharmaceutical location.
The existing agreements involving Roche and Novartis are due to expire.
- Companies
- Roche and Novartis
- Existing deal expiry
- Early 2029
- Tariff for Swiss firms without a deal
- 15 percent
- UK NHS price increase
- 25 percent from April
- Swiss report deadline
- By the end of 2026