Swiss pharma at risk of US trade investigation, industry body says

Novartis AG

Yesterday 17:35

    ZURICH, June 26 (Reuters) - The United States could open a trade investigation into Switzerland's pharmaceutical industry similar to the one initiated last week against Germany, the head of Swiss industry body Interpharma said on Friday.
Washington has launched so-called Section 301 investigations into suspected unfair trade practices against dozens of countries. 
It initiated the probe against Germany after Berlin unveiled plans in April for a ​wide-ranging overhaul of its statutory healthcare system, including plans to lower spending ​on pharmaceutical products.
The investigation could result in the U.S. taking tariff-related action against German imports, though sources have since said the government is backtracking on the plan following opposition from pharmaceutical companies. 
Switzerland is also currently reviewing measures aimed at reducing mandatory healthcare prices, which could see drug prices lowered, something the industry has criticised.
"It is clear that Switzerland is also a potential target in light of the current (health insurance ordinance) revision," Interpharma's CEO René Buholzer said in a statement.
Buholzer pointed to a letter written by Republican U.S. congressmen this month urging the U.S. Trade Representative and commerce secretary to open Section 301 investigations into unfair foreign pharmaceutical pricing policies. 
The lawmakers, who argued foreign governments' curbs on spending unfairly push the burden of pharmaceutical innovation onto U.S. consumers, named both Germany and Switzerland as "doubling down on their strategy to free-ride off the United States".
   Switzerland is home to major drugmakers including Roche ROPC.S and Novartis NOVN.S, and pharmaceutical and chemical products made up over half of its exports last year.

 (Reporting by Marleen Kaesebier in Zurich; Editing by Joe Bavier)
 ((marleen.kaesebier@thomsonreuters.com;))