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Pharmaceutical Hub Switzerland 2020 Zurich-Zug-Lucerne- Schaffhausen Table of Contents

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Pharmaceutical Hub Switzerland 2020 Zurich-Zug-Lucerne- Schaffhausen Table of Contents PHARMACEUTICAL HUB SWITZERLAND 2020 ZURICH-ZUG-LUCERNE- SCHAFFHAUSEN TABLE OF CONTENTS Preface 4 Pharmaceutical Industry in Switzerland 6 Swiss Pharmaceutical Cluster 8 Zurich-Zug-Lucerne-Schaffhausen 10 Innovation Capacity 18 Inward Investment Factors 26 Company Profiles 32 Glossary 50 ZURICH-ZUG-LUCERNE-SCHAFFHAUSEN 3 PREFACE The region's attractiveness for companies in the life sciences sector is based on several factors: its cen- tral location and proximity to Zurich Airport ensure excellent accessibility, while the first-class education Cantonal Councillor and research facilities - thanks, among other things, Silvia Thalmann-Gut to the internationally leading universities ETH Zurich Director for Economic Affairs of the Canton of Zug and the University of Zurich - also make the region an excellent location for innovation. Switzerland and the pharmaceutical industry have been following a successful path together for deca- The region also stands out for its attractive tax sys- des: attractive economic policy conditions have favou- tem and the availability of highly qualified workers. red the impressive development of the research-ba- The latter is particularly important for research-in- sed pharmaceutical industry. At the same time, the tensive industries. Thanks to the good conditions, an pharmaceutical industry, as a pillar of the economy, above-average number of Interpharma member com- contributes above average to Switzerland's prosperi- panies are located in the Zurich-Zug-Lucerne-Schaff- ty. In 2018, the pharmaceutical industry generated hausen region. around 36 billion Swiss francs in direct added value. For every Swiss franc of value added in the pharma- In a productivity comparison with other life-sciences ceutical industry, an additional 73 centimes of value locations, the region also scores well, ranking ahead added were generated in other Swiss industries. This of some internationally recognized life-sciences loca- amounts to around 26.1 billion francs. The total direct tions such as London, Boston and Munich. and indirect value added was thus 62.1 billion Swiss francs. This represents 9.3 percent of Switzerland's The life science cluster of the prospering economic total economic output. region of Zug comprises around 300 companies with around 8,500 employees – these figures include the The Life Science Cluster has a strong position in the industrial aggregates pharmaceutical industry, medi- Zurich-Zug-Lucerne-Schaffhausen area, with the me- cal technology, research and development in biotech- dical technology sector playing a leading role within nology as well as associated wholesale and administ- the cluster. Due to the excellent location factors, the rative units. Among the resident medtech companies, region has also developed into a popular location in the entire value chain is represented, including re- Europe for international and European headquarters search and production. In the pharmaceutical and for pharmaceuticals and biotechnology in recent de- biotech sectors, international and European head- cades. quarters benefit from the attractive Zug business en- vironment. 4 PHARMACEUTICAL HUB SWITZERLAND ZURICH-ZUG-LUCERNE-SCHAFFHAUSEN 5 PHARMACEUTICAL IN- DUSTRY IN SWITZERLAND The pharmaceutical industry significantly impacts the Swiss economy both directly and indirectly. The direct economic importance can be measured, for 9.3% example, by the value of exports, number of emp- loyees or gross value added (GVA). The latter is cal- AVERAGE ANNUAL culated by deducting the value of intermediate goods GROWTH RATE OF REAL and services from the goods produced (production GROSS VALUE ADDED value). In 2018, the nominal GVA of the pharmaceu- per year (2008-2018) tical industry amounted to 36.0 billion Swiss francs – an approximate fourfold increase compared to 20 years earlier. With an average annual growth rate of real GVA of 9.1 percent, the pharmaceutical industry has impacted considerably on the growth of the Swiss 5.1 x economy in recent years. MORE PRODUCTIVE THAN The indirect effects of the pharmaceutical industry can OVERALL ECONOMY be measured in addition to its direct effects. Through (2018) cross-industry collaboration with other companies, taking pharmaceutical industry demand for inter- mediate goods and services into account, additional employment is created for 207,300 people. Similarly, 36.0 BN. the employee demand for consumer goods and ser- SWISS FRANCS NOMINAL vices have an indirect effect on the overall economy. GROSS VALUE ADDED The direct and indirect GVA amount to approximately in 2018 62.1 billion Swiss francs. Furthermore, pharmaceutical companies in Switzer- land invest heavily in research and development (R&D) , - in 2017, the total was 6.5 billion Swiss francs. The 46 800 share of private-sector investment in R&D accounted EMPLOYEES for around 18 percent of GVA in 2017. This high rate in 2018 of investment highlights the importance of the Swiss Source: BAK Economics, BFS Source: research hub. In addition, the sector is making a sig- nificant contribution to ensuring that Switzerland is Study on behalf of Interpharma also perceived as an innovation driver internationally, Further information on the economic importance of the Swiss pharmaceutical industry is provided in our publi- leading the European and global innovation rankings. cation, entitled “The Importance of the Pharmaceutical Industry for Switzerland”. This is available on our website at Publikationen. 6 PHARMACEUTICAL HUB SWITZERLAND ZURICH-ZUG-LUCERNE-SCHAFFHAUSEN 7 SWISS PHARMACEUTICAL CLUSTER Basel Region The Basel Region Pharmaceutical Cluster comprising the cantons of Basel-Stadt, Basel-Land and Jura to- Around gether with the regions Fricktal and Dorneck-Thiers- 90.7% tein, is of major international importance. Interna- OF THE SWISS PHARMACEUTICAL INDUSTRY tional companies such as Actelion, Bayer, Boehringer NOMINAL GROSS VALUE ADDED Ingelheim, Novartis and Roche are in this area. was achieved in the Basel Region, Espace Mittelland- Bassin Lémanique and Zurich-Zug-Lucerne-Schaffhau- Espace Mittelland-Bassin Lémanique sen clusters in 2018. Source: BAK Economics The cantons of Bern, Fribourg, Neuchâtel and So- lothurn are in the Espace Mittelland Area whilst the Geneva and Vaud cantons are located in the Bassin Lémanique Area. Together they form the Espace Mit- telland-Bassin Lémanique cluster, which is home to the Swiss branches of Biogen, Bristol-Myers Squibb, Eli Lilly, GlaxoSmithKline, Merck, Sanofi, Takeda, UCB and Vifor Pharma. Zurich-Zug-Lucerne-Schaffhausen The Zurich-Zug-Lucerne-Schaffhausen cluster has grown into an attractive location for international life sciences companies. It is home to the following companies: AbbVie, Allergan, Amgen, AstraZeneca, Bayer, Biogen, Bristol-Myers Squibb, Cilag, Gilead, Janssen, Lundbeck, Merck, MSD (Merck Sharp & Doh- me), Novartis, Pfizer, Roche, Sanofi, Takeda and Vifor Pharma. Ticino / Valais There are also two smaller pharmaceutical clusters Basel Region in Switzerland: The cluster in Canton Ticino, where Espace Mittelland-Bassin Lémanique pharmaceutical industry has grown historically and which includes now several medium-sized companies. Zurich-Zug-Lucerne-Schaffhausen The Canton Valais has a cluster which is extremely Ticino important as the area accommodates suppliers who produce chemical inputs for pharmaceutical produc- Valais tion. 8 PHARMACEUTICAL HUB SWITZERLAND ZURICH-ZUG-LUCERNE-SCHAFFHAUSEN 9 ZURICH-ZUG-LUCERNE- SCHAFFHAUSEN In the Zurich-Zug-Lucerne-Schaffhausen region, the THE PHARMACEUTICAL INDUSTRY IN THE pharmaceutical industry employs 4,100 people who ZURICH-ZUG-LUCERNE-SCHAFFHAUSEN CLUSTER generate a nominal gross value added of 2.7 billion Swiss francs. Although the cluster is considerably smaller than, for example, the one in Basel, it never- theless makes a significant contribution of 9 percent to the nationwide value added of the pharmaceutical 9.7% industry. AVERAGE ANNUAL GROWTH RATE OF REAL In addition to the pharmaceutical industry, the me- GROSS VALUE ADDED dical technology sector also produces (electrical and per year (2008-2018) orthopaedic) medical goods. Other companies are ac- tive in research and development in the field of bio- technology. Together, these three sectors form the life sciences aggregate. 14.7 The Zurich-Zug-Lucerne-Schaffhausen life sciences cluster has traditionally been focused on medical PATENT APPLICATIONS technology. In fact, the area has long held a leading in 2015 position in the national medical technology sector. (per million inhabitants) The area’s attractiveness for life sciences companies is based on several factors: The area’s central loca- tion and proximity to Zurich Airport ensure excellent accessibility, while first-class education and research – thanks, amongst other things, to ETH Zurich – also 2.7 MRD. highlight the area’s innovation capacity. The area is SWISS FRANCS NOMINAL also appealing because of its attractive taxation sys- GROSS VALUE ADDED tem and the availability of a highly qualified workfor- in 2018 ce. The latter is extremely important for research-in- tensive companies. Thanks to these good conditions, an above-average number of Interpharma member companies are in 4100 the Zurich-Zug-Lucerne-Schaffhausen Area. EMPLOYEES in 2018 Source: BAK Economics, BFS, OECD BAK Economics, BFS, Source: 10 PHARMACEUTICAL HUB SWITZERLAND ZURICH-ZUG-LUCERNE-SCHAFFHAUSEN 11 ZURICH-ZUG-LUCERNE-SCHAFFHAUSEN Employment in the life sciences sector Employment in the life sciences sub-sectors Share of overall employment
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