Swiss pharmaceutical industry trends and growth

The Swiss pharmaceutical sector is seeing a significant shift toward outsourcing development and manufacturing to specialized Contract Development and Manufacturing Organizations (CDMOs). Analysts indicate that the share of outsourced activities rose from 34% in 2014 to approximately 50% in 2023, with the global CDMO market projected to reach $500 billion by 2030. Swiss companies such as Lonza, Bachem, Siegfried, and Dottikon are positioned to benefit from this trend due to the increasing complexity of biologics and an aging global population.

In relation to these market shifts, Lonza Group has announced updated mid-term financial targets, aiming for average organic revenue growth of 10% to 13% at constant exchange rates and an operating profit margin in the high 30% range.

Roche has reported recent sales figures showing 46.5 billion Swiss francs in revenue for the first nine months of the year, representing a 1% nominal increase and a 6% increase at constant exchange rates. This growth was supported by products such as Xolair, Hemlibra, and Ocrevus.

However, Roche CEO Thomas Schinecker has warned that Europe is “clearly in the process of losing touch and falling behind” in global innovation. Schinecker indicated that the company will prioritize investments in markets that actively reward innovation, specifically the USA and Asia. This follows Roche’s decision to temporarily suspend future investments in Germany, citing frustration with government cost-cutting measures and mandates for higher manufacturer discounts.