Roche CEO Warns US Drug Price Deals Could Raise Costs of New Medicines in Switzerland

Deals between pharmaceutical companies and the US government to lower medicine prices are likely to push up the cost of newly launched drugs in Switzerland, according to Roche CEO Thomas Schinecker. The Swiss pharmaceutical giant’s chief executive shared his concerns in an interview with the Swiss newspaper Tages-Anzeiger, following announcements from Washington aimed at reducing drug prices for low-income Americans.

Under the agreements revealed on Friday, drugmakers, including Roche’s US unit Genentech, will significantly reduce prices for medicines sold through the Medicaid program. The White House said the move would prevent other countries from benefiting from US-funded pharmaceutical innovation through strict price controls, while encouraging wealthier nations to contribute more to the cost of developing new therapies.

Schinecker explained that Washington’s long-term strategy is to align drug prices more closely with a country’s economic strength. According to him, the US could use gross domestic product per capita as a benchmark when determining where prices should be higher or lower. Countries with higher GDP per capita than the United States, such as Switzerland, would be expected to pay more for new medicines, while less affluent nations like Italy could pay less.

He noted that existing drugs in Switzerland would not be affected, meaning prices would not rise immediately. However, future drug launches would likely follow this new pricing framework. Schinecker emphasized that any changes would be gradual, occurring over several years as new medicines enter the market.

Swiss politicians have voiced concern about potential price increases, especially given the impact on healthcare costs. However, the pharmaceutical industry remains a cornerstone of Switzerland’s economy, contributing heavily to exports, employment, and tax revenues. Schinecker warned that if Switzerland resists higher prices for innovative medicines, patients could face delays in access to new treatments.

Countries such as Denmark, Germany, France, the UK, Italy, Japan, Canada, and Switzerland are currently being used as reference points for US drug pricing, and Roche is in ongoing discussions with these governments. The issue is also expected to feature in broader trade talks between Bern and Washington, including negotiations related to US tariffs on Swiss goods.

According to World Bank data, Switzerland’s GDP per capita exceeds that of the United States, both in nominal terms and when measured by purchasing power parity, reinforcing concerns that Swiss medicine prices could rise over time.