Business Association Chemistry Pharma Biotech
 
Newsletter
March 28th, 2017
   

scienceindustries, the Swiss Business Association Chemistry Pharma Biotech, keeps you abreast of our industry's viewpoints regarding current business and social issues.
 
 
Topics covered
in this Issue
   
Brexit and its impact on trade policy  
 
Implementation of the mass immigration initiative is pro-business and EU-compatible  
 
scienceindustries rejects the RASA initiative and the Federal Council's counter-proposals  
 
Say NO to the Energy Act on 21 May 2017  
 
Tax proposal 2017: What will happen after the rejection by voters on 12 February?  
 
Counter-proposal to the popular initiative "For food security" is acceptable  
 
Amendments to the Health Insurance Ordinance and Health Care Benefits Ordinance entered into force on 1 March 2017  
 
Pharma associations reject the reference price system for medication whose patents have expired  
 
National Council wants to abolish the incentive tax on VOC  
 
Thanks to the intervention by scienceindustries, the cantonal initiative "Stop the transport of chlorine" will not be followed up  
 
AGM of 19 May 2017: Five new members proposed for election to the Board  

 
 
      Brexit and its impact on trade policy

The decision of the United Kingdom of Great Britain and Northern Ireland (UK) to leave the EU is creating much uncertainty. It is in particular not yet clear in what form and over what period of time future relationships between the UK and the EU and the other important trade partners will be negotiated. This process can be expected to last several years.

From the point of view of scienceindustries, cooperation between Switzerland and the UK as secured by the bilateral agreements with the EU should be guaranteed as comprehensively and quickly as possible by suitable new agreements. In this way, the UK could be aligned economically with Switzerland by way of a Swiss-UK free trade agreement. During the transition period, the status quo should remain protected by law.

A constantly updated scienceindustries working paper summarises the strategic challenges and opportunities of the Brexit process for Switzerland from the point of view of the member companies of scienceindustries.
 
 
      Implementation of the mass immigration initiative is pro-business and EU-compatible

The implementation of the mass immigration initiative by way of the autonomous measures set out in the constitutional amendment (Art. 121a of the Federal Constitution) approved by Parliament at the end of 2016 can be described as relatively pro-business and EU-compatible. The amendment does not violate the agreement on the free movement of persons and does not require consensus negotiations with the EU, which sidesteps the EU's demand for an institutional framework agreement. A decision about any amendment to the Constitution that might be considered necessary can be taken at a later date, in particular also in conjunction with the Federal Council's counter-proposal to the RASA "End the impasse" initiative.
 
 
      scienceindustries rejects the RASA initiative and the Federal Council's counter-proposals

As scienceindustries is of the opinion that it would be a mistake in terms of democratic policy to delete Art. 121a of the Federal Constitution, it rejects RASA and the Federal Council's two counter-proposals. However, scienceindustries agrees with the efforts of the Federal Council and the RASA initiators to uphold the bilateral agreements with the EU as these are important for the national economy and their abolition could seriously jeopardise Switzerland's competitive position.

If the Federal Council should consider a counter-proposal to be a political necessity, scienceindustries would favour the second variant as this would avoid a debate on Switzerland's EU policy at the present time. scienceindustries does not believe that the repeal of the transitional provision in Article 197 para. 11 (2) of the Federal Constitution justifies a referendum on the amendment of the Federal Constitution.
 
 
      Say NO to the Energy Act on 21 May 2017

Because of its concerns for Switzerland's status as a business centre, scienceindustries has been critical of the discussions concerning the Energy Strategy 2050 from the outset and has also managed to defuse some of the issues during the parliamentary process by collaborating with other business associations (e.g. limitation of feed-in remuneration at cost, sunset clause). While recognising these improvements, the Board of scienceindustries still has to reject the Energy Strategy 2050 for regulatory and business reasons.

In the run-up to the referendum on 21 May 2017, scienceindustries has joined the "Business Committee Against the Energy Act," together with business associations such as Swissmem, Swissplastics and the Swiss Builders Association. The Business Committee held its first media conference on 20 March 2017 to explain in detail why the Energy Act has to be rejected from a business viewpoint.

Individual companies and/or persons can also join the Business Committee in support of the referendum campaign against the Energy Strategy 2050. scienceindustries is inviting its member companies and their representatives to join the Business Committee Against the Energy Act. More information and all campaign documents are available at: www.wirtschaft-gegen-energiegesetz.ch.
 
 
      Tax proposal 2017: What will happen after the rejection by voters on 12 February?

After the decisive rejection of the Corporate Tax Reform III by the voters on 12 February 2017, scienceindustries welcomes the Federal Council's intention to quickly prepare a new proposal for the reform of the corporate taxation system. A speedy approach agreed with all the relevant players is crucial to ensure a fast and orderly transition to a new, internationally accepted and competitive tax system. Companies in Switzerland need legal and planning certainty as soon as possible.

The ball has been returned to the court of government, parliament and in particular the cantons, who have to push ahead with and provide a political foundation for their reforms in order to give the companies and people of Switzerland new perspectives.
 
 
      Counter-proposal to the popular initiative "For food security" is acceptable

scienceindustries decisively rejected the popular initiative "For food security" and is pleased that the Swiss Farmers' Union (SBV) has withdrawn the initiative. In contrast to the popular initiative, the counter-proposal adopted by Parliament does not exclude the further opening of the market and cuts down on the protectionist elements. scienceindustries can accept this approach.
 
 
      Amendments to the Health Insurance Ordinance and Health Care Benefits Ordinance entered into force on 1 March 2017

The Federal Council recognised some of the concerns of the pharmaceutical industry in the most recent amendments to the Health Insurance Ordinance (KVV) and the Health Care Benefits Ordinance (KLV). For example, the three-yearly review of one-third of the medicines included in the Specialty List (LS) has been maintained. The review will be carried out again in 2017 without compensating for the absence of a review in 2016. The SL price is calculated by way of foreign price comparison (APV) as well as therapeutic cross comparison (TQV). Both factors are equally weighted. The maximum price limits introduced during the previous revision have been deleted again without being replaced. The price differential for generic products was increased across the board by 10%. The differentiated deductible of 20% for a drug is maintained if the medication is at least 10% more expensive than the average price for the cheapest third of all drugs containing the same substances.

Unfortunately, drugs with a "same indication or similar mode of action" will no longer be used for the therapeutic cross comparison system (TQV) in future, but rather drugs used "to treat the same disease". This new definition creates legal uncertainty. The FOPH's intention to use the prices of original medication that are no longer protected by patent when choosing comparison drugs for the therapeutic cross comparison (TQV) of original medication protected by patents is also irritating. scienceindustries rejected this approach in its comments on the SL Manual. The intention of using only the price of the cheapest indication for therapeutic cross comparison (TQV) for drugs that have been admitted and are reimbursed for several indications is also to be rejected.
 
 
      Pharma associations reject the reference price system for medication whose patents have expired

Federal Councillor Berset announced at the beginning of March that he wants to introduce a reference price system for determining the prices of medicines that are no longer protected by patent in Switzerland. The FOPH could then determine a maximum price for a specific substance, and only drugs that do not exceed this price will then be reimbursed in full by the compulsory health insurance. Patients or their supplementary insurance policies will then have to pay the difference.

The introduction of a reference price system inevitably leads to:
  • the loss of patients' right to choose their own medication
  • regular changes in medication, resulting in tolerance complications
  • reduced intake compliance by patients, as intake instructions differ for different preparations
  • a loss of trust in the prescribing persons as patients question regular changes to their prescriptions
  • an increased need for prescribing and issuing units to provide patients with information and advice
  • supply shortfalls when drugs are taken off the market (e.g. in the Netherlands or Denmark)
Together with other pharma associations, scienceindustries is rejecting the introduction of a reference price system and is in favour of maintaining the system of the "price differential rule".
 
 
      National Council wants to abolish incentive tax on VOC

The objective of the incentive tax has been reached over the past years, and the VOC incentive tax no longer has any effects of regulation. But the Swiss business sector still has to draw up expensive VOC balance sheets every year, which requires much administrative input.

Contrary to the Federal Council's intention, the National Council approved a motion to abolish the VOC incentive tax with 97 to 87 votes and 9 abstentions at the spring session. This is a first success, as scienceindustries and other business associations have been striving for many years for administrative relief for companies without compromising the environmental standards. The Council of States is expected to debate the matter as early as the summer season. scienceindustries will discuss the next steps with its partner associations and stakeholders.
 
 
      Thanks to the intervention by scienceindustries, cantonal initiative "Stop the transport of chlorine" will not be followed up

Following the example of the Council of States, the National Council also decisively rejected the cantonal initiative by Geneva to "Stop the transport of chlorine to protect the people and to build housing" with 118 to 50 votes and 10 abstentions at the spring session. scienceindustries has worked towards this decision in the past few months after all parties involved signed the "Joint Declaration II" in September 2016. This continues the first Joint Declaration dating from 2002. "Joint Declaration II" contains specific measures and a time schedule for their implementation to make the transport of chlorine even safer in future. Any further measures are neither necessary nor advisable. Transport prohibitions would have far-reaching consequences for the manufacturing industry and would also impact the national economy.
 
 
      AGM of 19 May 2017: Five new members proposed for election to the Board

The Board of scienceindustries proposes to the Annual General Meeting to elect the following new members to the Board:
  • Jan Jenisch, CEO Sika
  • Dr. Frank Lehmann, Vice President, Global Head of Open Innovation & Venturing, Nestlé
  • PD Dr. Hans Peter Lüthi, Laboratory of Physical Chemistry, ETH Zurich
  • Dr. Heini Menzi, President Givaudan Switzerland and branch manager of Givaudan Zurich
  • Dr. Alvin Williams, Vice President, Global Ingredients Purchasing, Firmenich
The 135th Annual General Meeting of scienceindustries will be held on Friday, 19 May 2017 at Siegfried AG in Zofingen.
 
 
     
Do you want to know more about our points of view, or do you have any questions about them? Follow us on Twitter or contact our specialists at scienceindustries.

sig. Dr. Beat Moser
Director
sig. Marcel Sennhauser
Head of Communications
 
 
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