Annual report 2018

30 | Galenica annual report 2018 Political environment Healthcare sector: an increasingly important branch of the Swiss economy According to a 2018 forecast by the KOF Swiss Economic Institute of ETH Zurich, growth in healthcare expenditure is expected to level off at just under 4% over the next two years, with a relatively moderate increase in health insurance premiums in 2019. At the same time, the healthcare sector is becoming an increasingly important branch of the Swiss economy, having accounted for 5.4% of total value added in 2016 (KOF 2018). In 2017, the Federal Council initiated a discussion on health policy in Switzerland with an expert group report on curbing cost growth in the healthcare system. Its aim is to eliminate false incentives and stem rising costs. At the same time, it is seeking to establish a high-quality healthcare system that is accessible to all. Strengthening of outpatient care providers The shift from in-patient to out-patient care is to take place by adjusting the tariff structure accordingly. The Federal Council is committed to independent, decentrally coordi- nated care provided by doctors and pharmacists, and wants to promote networking in a targeted manner. Political environment Digitisation and networking of healthcare stakeholders As part of the “Digital Switzerland” action plan, the Federal Council commissioned the “E-Health strategy for Switzer- land 2.0” in 2016, which aims to improve the quality, safety and efficiency of the healthcare system through digital net- working. Digitisation offers new opportunities in the health- care sector. The legal framework for the best possible pro- motion of digital health will be gradually defined over the coming years. Initial regulations, such as the Cancer Regis- tration Act (CRA) and the Electronic Patient Record Act (EPRO) will soon come into force or have already done so. It is largely unclear how questions of ethics, data protection and supplementary legislation are to be regulated in order to help digitisation in the healthcare sector achieve a break- through. Revision of the Therapeutic Products Act (TPA) – reclassification of dispensing categories The changes from the ordinary revision of the TPA came into force on 1 January 2019. The aim of the revision was to improve the population’s access to medicines. The revision of the TPA led to a reclassification of medicinal products as of 1 January 2019. Until the end of 2018, the categorisation into five lists was as follows: A – stricter prescription-only status, B – prescription only, C – pharmacy only, D – also available in drugstores, E – sale in all shops. The revision will also strengthen the role of the pharmacy. Category B products can, in justified cases, also be sup- plied by a pharmacist without a prescription, and the ser- vices which pharmacists can invoice via compulsory health insurance will be expanded. The aim of these efforts is to strengthen treatment compliance. Since the beginning of 2019, List C in principle no longer exists. Approximately 85% of the medicinal products pre­ viously included in List C have been classified in List D and will therefore only be available from specialist retailers. The other approximately 15% have been included in List B to increase patient safety, i.e. pharmacies can continue to dis- pense them without a doctor’s prescription. Around 100 products have been transferred from List D to List E and can therefore be sold freely without specialist advice in future. Swiss pharmaceutical market by value Market volume 2018: CHF 5,969.2 million (at ex-factory prices, 100%) Pharmacies 49.7% Dispensing doctors 24.7% Hospitals 24.6% Drugstores 1.0% Source: IQVIA, pharmaceutical market Switzerland 2018 Galenica