Interpharma: "The MFN clause is putting us in trouble" (cross-border guide)

Context

In short - Swiss pharmaceutical companies are holding back the arrival of new drugs for fear of repercussions on prices in the United States. - The US policy of lowering the price of medicines with the MFN clause is also felt in Switzerland. ## Key facts - MFN clause : a US policy that lowers the price of medicines - Impact in Switzerland: Swiss pharmaceutical companies curb the arrival of new medicines - Date: January 2025 - June 2026 - Place: Switzerland - Amount: 22 products launched, 7 renounced for inclusion in the BASEL ES - The US policy of lowering the price of medicines with the 'Most-Favored-Nation' clause is also felt in Switzerland. In almost a third of cases, local pharmaceutical companies do not submit their new products to the process of admission to the list of specialties (ES), necessary for taking charge by the sick funds. “The MFN clause is putting us in trouble,” says a representative of Interpharma, the Swiss association of pharmaceutical companies. “It forces us to carefully assess the risks and costs of launching new drugs.” According to data provided by Interpharma, between January 2025 and June 2026, 22 new products were submitted to the admission process in the ES, but only 15 were accepted. In contrast, 7 products have been dropped from the list. This means that Assess the impact of the MFN clause on the Swiss population Check the measures taken by the health authorities and sickness funds to address the issue References to specific municipalities in Ticino The Canton of Ticino is the second Swiss canton by population, after the Canton of Zurich. The population of the Canton of Ticino is about 360,000 people. The Canton of Ticino is known for its economy based on the textile industry and watch production. Regulations with dates and amounts The MFN clause was introduced in the United States in 2020. The cost of launching a new drug can range from 10 to 100 million Swiss francs. The number of products launched and renounced for inclusion in the ES is 22 and 7 respectively. Comparisons between practical scenarios

Operational details

Interpharma: "The MFN clause is putting us in trouble"

Swiss pharmaceutical companies fear they will have to lower the prices of their products to avoid being penalized by the United States. This leads to a slowdown in the arrival of new drugs in Switzerland, resulting in greater difficulty for patients to access innovative treatments.

The issue underlying this problem is the MFN (Most Favored Nation) clause introduced by the United States in 2020, through the “Ensuring Affordable Access to New Generics and Biosimilars” Decree of 13 February 2020, which requires pharmaceutical manufacturers to offer their products at competitive prices in all markets, in order to promote competition and lower drug prices.

According to Interpharma, an association representing Swiss pharmaceutical companies, this clause could have a significant impact on the Swiss pharmaceutical market. The management of Interpharma, Urs Baumann, said: "The MFN clause is putting us in trouble. We are concerned about the impact it could have on our industry and Swiss patients. ”

The main concern of pharmaceutical companies is that the MFN clause could force them to reduce the prices of their products in Switzerland, so as not to be penalized by the United States. This could lead to a slowdown in the arrival of new drugs in Switzerland, as pharmaceutical companies may be less

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Key points

Switzerland would need a pricing system compatible with the Most Favoured Nation (MFN), taking into account the availability, quality and cost of innovations. This would lead to an increase in the competitiveness of Swiss pharmaceutical companies and an improvement in the quality of services for patients.

The issue is particularly felt in Ticino, where many of the Swiss pharmaceutical companies are concentrated. Interpharma, the association of Swiss pharmaceutical companies, recently expressed its concerns about the MFN clause, which could put local companies in trouble.

The MFN clause was introduced in 1995 with the World Trade Organization (WTO) Agreement on Intellectual Property and provides that member countries shall not discriminate between suppliers of goods or services. This means that Swiss pharmaceutical companies must offer prices equal to those offered by other pharmaceutical companies operating in other WTO member countries.

However, as Interpharma points out, the current pricing system is not compatible with the MFN clause. “The MFN clause is putting us in trouble,” the association says. “Our companies must offer prices the same as those offered by other pharmaceutical companies, but the current pricing system is not compatible with this requirement.”

A concrete example of how the current pricing system works is the case of the pharmaceutical company Novartis, which has a

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Source: tio.ch