The 5% · Switzerland · Brand drugs

Why Switzerland brand drugs are cheaper

It’s cheaper because Switzerland sets one price for the drug. Every hospital and pharmacy pays that (or a cap under it). In the US, each insurer and PBM bargains a rebate off a high list, and the sticker stays high.

Federal Office of Public Health list

How it works

Swissmedic licenses the drug. The Federal Office of Public Health then puts it on the specialty list at a negotiated price, using international reference pricing. Insurers pay that list. They do not each cut a secret US-style rebate deal on a $150k sticker.

Why it holds

A national list is a ceiling. Switzerland is rich and still about 29¢ on US brands (RAND: US 3.39× Switzerland). They get the oncology year. They do not pay US list so the manufacturer can ‘recoup R&D’ a second time.

The invoices

SKUUnited StatesSwitzerland
Brand originators on the US dollarsourced$1.0029¢
All drugs on the US dollarsourced$1.0046¢
Specialty year at the brand indexmodeled$150,000~$44,000

See RAND drugs. 30-day list prices: CMS 2023, Inflation Reduction Act round 1.

Twenty brands — US sticker vs Switzerland

Ranked by the US number. 30-day list is CMS 2023 (Inflation Reduction Act round 1). Infusion doses are our hospital commercial bill. Switzerland column is that US sticker × this country’s RAND brand index. Gross list, not rebates. Even after a US rebate haircut, RAND says brands stay more than 3×.

DrugUnited StatesSwitzerlandOn the US $
Keytruda (pembrolizumab)hospital dosemodeled$16,800$4,95129¢
Opdivo (nivolumab)hospital dosemodeled$15,000$4,42029¢
Alteplase (tPA) stroke dosehospital kitmodeled$15,000$4,42029¢
Imbruvica (ibrutinib)30-day listsourced$14,934$4,40129¢
Stelara (ustekinumab)30-day listsourced$13,836$4,07729¢
Herceptin-class (trastuzumab)hospital dosemodeled$9,200$2,71129¢
Neulasta-class (pegfilgrastim)hospital dosemodeled$8,900$2,62329¢
Avastin-class (bevacizumab)hospital dosemodeled$8,100$2,38729¢
Enbrel (etanercept)30-day listsourced$7,106$2,09429¢
Rituximab biosimilarhospital dosemodeled$6,800$2,00429¢
Remdesivir coursehospital coursemodeled$4,200$1,23829¢
Humira-class (adalimumab) clinicclinic syringemodeled$2,400$70729¢
Ozempic (semaglutide)30-day listmodeled$969$28630¢
Entresto (sacubitril/valsartan)30-day listsourced$628$18529¢
Jardiance (empagliflozin)30-day listsourced$573$16929¢
Farxiga (dapagliflozin)30-day listsourced$556$16429¢
Januvia (sitagliptin)30-day listsourced$527$15529¢
Eliquis (apixaban)30-day listsourced$521$15430¢
Xarelto (rivaroxaban)30-day listsourced$517$15229¢
NovoLog / Fiasp (insulin)30-day listsourced$495$14629¢

Also: Why Switzerland hospital prices · Who bargains with whom · Bargaining chips · The rulebook · Problems / solutions · National debt · Drug voices · Back to The 5%