pharmaceutical hub switzerland: zurich-zug-lucerne

PHARMACEUTICAL HUB SWITZERLANDZURICH-ZUG-LUCERNE

PHARMACEUTIC AL HUB SWITZERL AND / ZURICH-ZUG-LUCERNE 3

Preface 4

Pharmaceutical Industry in Switzerland 6Swiss Pharma Clusters 8Growth Driver Pharmaceuticals 10

Zurich-Zug-Lucerne Region 20Innovation Capacity 30Inward Investment Factors 36Outlook 44

Company Profiles 46Glossary 62

TABLE OF CONTENTS

4 PHARMACEUTIC AL HUB SWITZERL AND / ZURICH-ZUG-LUCERNE

PREFACE

Switzerland – attractive for global pharmaceutical companiesIf asked about the Swiss economy, people usually first think of banks, chocolate, tourism or watches. These industries are indeed of major importance for the national economy. Yet an industry that is often missing in this list, despite having emerged as one of the leading lights in the Swiss economy over the last century, is the pharmaceuti-cal sector. The aim of this publication on the Zurich-Zug-Lu-cerne cluster is to show the importance of the pharmaceu-tical industry for the Swiss economy, which is by no means confined only to Basel.

The importance of the pharmaceutical industry for Swit-zerland is reflected in the figures: in total more than 40,000 people work directly for the pharmaceutical com-panies. If the indirect work created through ancillary industries is included, as many as 170,000 jobs are related to the pharmaceutical industry. Moreover, it accounts for around one-third of all Swiss exports, and the productivity of the industry is four times as high as that of the economy as a whole. Three big clusters – the Lake Geneva area, the Basel region and Zurich-Zug-Lucerne – account for the lion’s share of the gross value added of the Swiss pharmaceutical industry.

Thomas B. CueniSecretary General Interpharma


The Zurich-Zug-Lucerne cluster can compete on various counts: not only do the three cantons offer an attractive environment in regulatory and fiscal terms, but they are also readily accessible thanks to excellent transportation infrastructure and attract highly qualified people. All this has led to a number of international companies establish-ing their headquarters in this region and contributing to dynamic economic growth thanks to their investments in research and development.

Within just a few decades, Zurich-Zug-Lucerne has devel-oped into a leading life sciences cluster for the agrochem-ical, biotechnology, medical technology and pharmaceuti-cal sectors, all of which are heavily engaged in research. In the Zurich-Zug-Lucerne region, the life sciences industry accounts for one out of every four francs earned in exports today – twice what it was in 2000. This is due amongst the things to the increase in research activity, which has led to the region today already filing around 60 patent applica-tions a year for every million inhabitants.

The Zurich-Zug-Lucerne cluster also offers, albeit to a lightly lesser extent, attractive medium to long-term growth prospects: the research institute BAK Basel Eco-nomics forecasts an annual value-added growth of more than 4 percent for the regional pharmaceutical industry up to 2020. The role of the pharmaceutical sector in the region is thus likely to grow further in the future as well. And perhaps this sector will one day be known as a flag-ship industry of the Swiss economy like the watchmaking industry.

6 PHARMACEUTIC AL HUB SWITZERL AND / ZURICH-ZUG-LUCERNEPHARMACEUTIC AL HUB SWITZERL AND / ZURICH-ZUG-LUCERNEPHARMACEUTIC AL HUB SWITZERL AND / ZURICH-ZUG-LUCERNE6 PHARMACEUTIC AL HUB SWITZERL AND / ZURICH-ZUG-LUCERNEPHARMACEUTIC AL HUB SWITZERL AND / ZURICH-ZUG-LUCERNE

Pharmaceutical industry in Switzerland, including all direct and indirect effects, 2012– nominal GVA: 43 billion CHF– employees: 172 000

PHARMACEUTICAL INDUSTRY IN SWITZERLAND

9.1%average annual growth rate

of GVA (2000–2012)

4

times more pro-ductive than overall

economy (2012)

24 billion CHF

nominal GVA (2012)

66 billion CHF of

exports (2013)

40 000employees (2012)

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The pharmaceutical industry impacts the Swiss economy both directly and indirectly. The direct economic impor-tance of the pharmaceutical industry can be measured for example by the number of employees, the value of exports or the gross value added (GVA). The latter is defined as the increase in the value of goods resulting from the produc-tion process and is calculated by deducting the value of intermediate goods and services from the total production value. The GVA of the pharmaceutical industry has grown on average by more than 9 percent annually over the last decade and is thus far higher than the GVA of other indus-tries.

The indirect economic importance of the industry arises from its interdependencies with companies from other industries, from the wage earnings of its employees and from the tax revenue from the companies. All these fac-tors create an additional demand for consumer goods and services, which in turn generate approximately 130,000 jobs in other industries.


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Roughly 75% per cent of the gross value added (GVA) in the Swiss pharmaceutical industry in 2012 has been generated by the Basel Region, Lake Geneva area and Zurich-Zug-Lucerne.

SWISS PHARMACLUSTERS

n Basel regionn Lake Geneva arean Zurich-Zug-Lucerne

n Ticinon Schaffhausenn Valais


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Basel region The pharmaceutical cluster Basel is home to the head-quarters of pharmaceutical companies steeped in tradi-tion, such as Boehringer Ingelheim, Novartis and Roche, as well as the biopharmaceutical company Actelion.

Lake Geneva areaThe cantons of Bern, Fribourg, Geneva and Vaud consti-tute the Lake Geneva cluster and are home to the Swiss branches of GlaxoSmithKline, Merck Serono, Sanofi and UCB.

Zurich-Zug-LucerneThe Zurich-Zug-Lucerne cluster has grown into an attrac-tive centre for international life sciences companies and is home to the following companies: AbbVie, Alcon, Amgen, AstraZeneca, Bayer, Biogen Idec, Bristol-Myers Squibb, Gilead, Janssen, Lundbeck, Merck, MSD (Merck Sharp & Dohme), Novartis, Pfizer, Roche and Vifor Pharma.

Schaffhausen-Ticino-ValaisBesides the big pharma clusters, there are three smaller clusters in Switzerland: In Canton Schaffhausen, the phar-maceutical industry plays an important role for the local economy and is based on the activities of Cilag, a subsidi-ary of the pharmaceutical company Janssen that is part of the Johnson & Johnson group. In the Ticino cluster, the pharmaceutical industry has grown historically and now includes several medium-sized companies. Canton of Val-ais plays a strategic role as supplier of chemical inputs for the pharmaceutical production.

10 DER PHARMA STANDORT SCHWEIZ / ZÜRICH-ZUG

GROWTH DRIVER PHARMACEUTICALS


Established in the second half of the 19th century, the pharmaceutical industry quickly assumed an important place in the Swiss economy and remains one of the strong-est growth industries to this day. This is due not only to the historical significance of the pharmaceutical industry in the region of Basel, but also to the attractive business environment of Switzerland as a whole.

For the fourth time in succession, Switzerland was ranked first in the Global Innovation Index of the World Intellectual Property Organization (WIPO) in 2014. Switzerland’s capacity for innovation is an essential precondition for a prosperous pharmaceutical industry. Other factors such as tax, accessibility and a large pool of highly trained employees are attracting leading companies in the fields of pharmaceuticals, biotechnology and other related industries to Switzerland.

Thanks to its innovation capacity, the pharmaceutical industry typically achieves an above-average level of pro-ductivity, and the productivity growth rate also usually outstrips that of industry as a whole.


Major importance of Swiss pharmaceutical industryIn an international comparison of average value-added growth rate, the Swiss pharmaceutical industry came out top: between 2000 and 2012, the Swiss pharmaceutical industry showed an average annual growth of just over 9 percent, ahead of Germany and the Netherlands and more than twice as high as that of the UK and the USA.

The value added of the Swiss pharmaceutical industry is also impressive as a proportion of the overall economy, with the industry generating more than almost four per-cent of Switzerland’s Gross Domestic Product (GDP). Even in second-placed Belgium, this proportion is below two percent. The contribution of the pharmaceutical industry to GDP has thus steadily grown over recent years. As a consequence, the importance of the industry for the Swiss economy as a whole has also grown.



Switzerland

Netherlands

Germany

Denmark

Sweden

UK

USA

France

Italy

* International data according to BAKBASEL database 2013, Swiss data according to ESA 2010.

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GROWTH RATE OF VALUE ADDED IN THE PHARMA INDUSTRYAnnual average growth rate per year (in %), 2000-2012

Switzerland

Belgium

Germany

Denmark

Italy

USA

Japan

UK

Netherlands

France

0% 1% 3%2% 4%

VALUE ADDED IN PHARMA RELATIVE TO TOTAL ECONOMYShare of GDP (in %), 2012

9.1

3.9

6.1

1.7

6.0

1.4

4.3

1.1

4.1

0.9

0.8

3.6

0.8

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0.6

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VALUE ADDED IN THE SWISS PHARMA INDUSTRYNominal GVA (in m CHF) Real GVA (index, 1997 = 100)

VALUE ADDED IN PHARMA RELATIVE TO TOTAL ECONOMYShare of nominal GVA in GDP (in %)


4.0%

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Strong dynamism of the Swiss pharmaceutical industryThe nominal gross value added of the Swiss pharmaceuti-cal industry has almost tripled in the past 15 years and stood at around 24 billion Swiss francs in 2012. When adjusted for inflation, the gross value added has actually quadrupled over the same period. And the number of employees has also steadily increased in the last two dec-ades, reaching more than 40,000 for the first time in 2012.

While the number of employees working in Switzerland’s pharmaceutical industry accounts for about one percent of all employees in Switzerland, the corresponding val-ue-added constitutes almost four percent of the economy as a whole. This ratio reflects above-average productivity of the pharmaceutical industry relative to the overall economy.

EMPLOYEES IN THE SWISS PHARMA INDUSTRYNumber of persons


Relevance of pharmaceutical exportsThe value of pharmaceutical exports has tripled over the past decade and currently stands at 66 billion Swiss francs. At the same time, pharmaceutical exports also accounted for an increasing proportion of Swiss exports overall: in 2013, around one out of three Swiss francs earned through exports was generated by the pharmaceu-tical industry.

Since 2005, exports of pharmaceutical products have increasingly shifted towards the BRIC states – Brazil, Rus-sia, India and China – and to the USA, while the proportion exported to Europe has fallen. The recent crisis in the Eurozone and the strong Swiss franc are likely to be the main reasons for this decrease. Nonetheless, Europe con-tinues to be the most important export market for Swiss pharmaceuticals.



2005

67% 11% 5% 14%

2000 2013

82%

18%

66%

34%

Pharmaceutical exports Rest

Pharmaceutical exports 22 bn CHF

Pharmaceutical exports 66 bn CHF

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Europe USA Japan BRIC Rest

2013

57% 15% 4% 7% 17%

SWISS PHARMA EXPORTSShare of total exports (in %)

SWISS PHARMA EXPORTS ACCORDING TO DESTINATIONSShare of destinations (in %)

3%


Competitive thanks to high productivityThe pharmaceutical sector exhibits the highest productiv-ity of all Swiss industries: on average, a worker generates goods and services worth 626,000 Swiss francs per year, which is about four times as high as the productivity in the overall economy. This high productivity is due to the research intensity and the highly specialized production processes of the pharmaceutical industry.

The productivity of Switzerland’s life sciences industry also holds up exceptionally well when compared with other countries. After correcting for purchasing power, it amounts to 286,000 US dollars, which puts Switzerland in first place. Only the three US clusters Boston, New York and San Francisco Bay Area and also Øresund can some-what keep pace in terms of their labour productivity.



Switzerland

Boston

Øresund

SF Bay Area

New York

Paris

Milan

London

Munich

Pharma

Energy

Financial sector

Chemicals

Information, communication

Investment goods

Food, tobacco

Total economy

Transport

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Total economy Life sciences

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LABOUR PRODUCTIVITY OF SWISS INDUSTRIESNominal GVA per employee (FTE, in 1 000 CHF), 2012

LABOUR PRODUCTIVITY OF LIFE SCIENCES INDUSTRYNominal GVA per employee (in 1 000 USD PPP), 2012

500 600

626

347

286

200

188

161

157

156

131

* International data according to BAKBASEL database 2013, Swiss data according to ESA 2010.

ZURICH-ZUG-LUCERNEREGION


The manufacture of medical devices is lumped together with the life sciences industry. This includes the agro-chemical, biotechnology, medical technology and phar-maceutical sectors, all of which are heavily engaged in research.

The Zurich-Zug-Lucerne region has established itself as a national leader in medical technology. The high quality of life (opportunities for first-class education, good accessi-bility, a central location etc.), the availability of qualified personnel and synergies with the medical technology industry already in place have increasingly attracted major pharmaceutical companies as well.

The companies settling in the region in recent years have led to a sharp increase in the number of employees in the life sciences cluster of the Zurich-Zug-Lucerne region.

ZURICH-ZUG-LUCERNEREGION


ZURICH-ZUG-LUCERNE REGION

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Pharmaceutical industry Agrochemical industry R&D in biotechnology Medical technology

0% 10% 20% 30% 60% 70% 80% 100%90%50%40%

Switzerland

Zurich

Zug

Lucerne

COMPOSITION OF THE LIFE SCIENCES INDUSTRYShare in total of employees (in %), 2012

55%

7%

4%

4% 12% 64%20%

5% 91%

7%

83%10%

36%

2%


Zurich-Zug-Lucerne as important life sciences cluster While the pharmaceutical industry is the biggest life sciences employer on the national average, it is medical technology that accounts for a particularly high propor-tion of life sciences employees in the Zurich-Zug-Lucerne cluster. The medtech industry accounts for more than 80 percent of employees in the life sciences sector in Can-tons Zurich and Zug, and 64 percent in Canton Lucerne.

However, the figures available do not tell the full story. There are two reasons for this: firstly a substantial propor-tion of employees in the pharmaceutical industry – espe-cially at headquarters – are registered in the official sta-tistics not under “manufacture of pharmaceutical products” (NOGA Dept. 21), but under “management and administration of companies” (NOGA Dept. 70). Since the latter are not counted as part of the pharmaceutical sec-tor, the share of employees in the pharmaceutical indus-try shown in the accompanying chart is too small.

Secondly, productivity – the value added divided by the number of employees – in the pharmaceutical industry is somewhat higher than in the medtech sector. In other words, the pharmaceutical industry generates more value added than medical technology with the same number of employees. But the distribution according to employees does not do justice to this situation, and the share contrib-uted by the pharmaceutical industry is likely to be higher in reality.



Zurich: university research centreSince the pharmaceutical industry is a research-intensive sector, an important pharmaceutical hub is defined not only by the establishment of important companies, but also by research activity.

As a university centre, Canton Zurich plays a crucial role here with its Federal Institute of Technology (ETH) and the University of Zurich.

This is shown by the high research spending at the univer-sities of Canton Zurich, which account for around 34 per-cent of all Swiss expenditure on research and develop-ment (R&D) at universities.

34%

23%

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Zurich Geneva Vaud Basel-Stadt Bern

R&D EXPENDITURE AT REGIONAL UNIVERSITIESShare in total of Switzerland (in %), 2011

8%12%

10%


Zug: site under developmentCanton Zug has been the site of many development pro-jects by pharmaceutical companies, especially Novartis and Roche, in the past few years. The demand for qualified personnel here has been steadily growing: The people especially in demand are researchers, engineers, IT experts and also sales and marketing specialists.

In 2013, for example, Novartis opened a new site in Rot-kreuz for the divisions of Novartis Pharma Schweiz, Novar-tis Consumer Health, Sandoz Pharmaceuticals and Alcon Switzerland. Altogether, the four divisions employ around 480 people – more than 300 of them in Rotkreuz.

But aside from the Swiss pharmaceutical companies, var-ious international companies, such as Amgen and Biogen Idec, also operate their international business from Can-ton Zug.



Rotkreuz: centre of medical technologyZug is developing as a business hub not only in the phar-maceutical sector, but also in life sciences generally. For example, Roche has established its diagnostics division in Rotkreuz. Diagnostic equipment is used, amongst other things, for blood tests in laboratories and hospitals. Scien-tists, engineers, IT specialists and other highly qualified people are in demand for developing the software used in the various systems and devices.

With more than 2,200 employees at its headquarters in Rotkreuz, Roche Diagnostics International is now the larg-est private-sector employer in Canton Zug. The ever more detail know-how in molecular biology allows increasingly precise systems and equipment to be developed. For years, therefore, there has been an above-average global demand for the products and services of the diagnostics industry.


Lucerne: pharmaceutical industry as important regional employerThe geographical position of Lucerne makes it a favoured pharmaceutical site: centrally located, the Lucerne region offers access to the airports of Zurich and Basel-Mulhouse within an hour by road or rail and a high quality of life. The central location and outstanding infrastructure facilitate access to highly qualified people and scientific exchange with leading universities and research institutions.

In 2011, as part of the global merger of its parent company Merck & Co., Inc. with Schering-Plough in the USA, the healthcare company Merck Sharp & Dohme (MSD) decided not only to establish its Swiss headquarters in the Lucerne region, but also to develop the site further and make it an international site with a global central function. For Scher-ing Plough Inc., Lucerne was always an important site in Switzerland with an international focus. Today, MSD employs more than 600 highly qualified people at 4 sites and is thus one of the most important regional employers.



Growing regional importance of exportsLife sciences exports as a percentage of total exports in the Zurich-Zug-Lucerne region have almost doubled in the past decade from 15 percent to 28 percent. In terms of value, regional life sciences industry exports increased from 3.4 to 7.5 billion Swiss francs in the years from 2000 to 2013.

Most life sciences exports still come from the pharmaceu-tical industry. In 2013, regional pharmaceutical compa-nies exported products worth almost 5 billion Swiss francs. This corresponds to 18 percent of the total exports of the region.

The proportion of life sciences exports to the USA was almost three times as high in 2013 as it was in 2005. The above-average level of life sciences exports by Swiss standards is probably due to the establishment of Ameri-can pharmaceutical companies in the region of Zurich-Zug-Lucerne.


2000 2013

Pharmaceuticals Medical devices Agrochemicals Rest

Life sciences exports 3.4 bn CHF

Life sciences exports 7.5 bn CHF

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LIFE SCIENCES EXPORTS OF ZURICH-ZUG-LUCERNEShare of total exports (in %)

85%

9%18%5%

9%

1%

1%

72%

2005

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Europe USA Japan BRIC Rest

2013

LIFE SCIENCES EXPORTS OF ZURICH-ZUG-LUCERNEShare of destinations (in %)

49% 22% 3% 5% 21%

16%8%73%

1%

2%

30 DER PHARMA STANDORT SCHWEIZ / ZÜRICH-ZUG

INNOVATION CAPACITY


Innovation – the commercial implementation of new ideas and inventions – is one of the most important growth fac-tors of a modern economy. In knowledge-intensive sec-tors, competitiveness is measured not by price, but rather by the capacity for innovation.

An example of the innovation skills of the Zurich-Zug-Lu-cerne region is the biotechnology company Glycart. Founded in 2000 as a spin-off from the ETH Zurich, a mul-tinational team is engaged in research and development of products at its research centre in Schlieren. Glycart was acquired by Roche in 2005, since when it has made a sustained contribution to the provision of new cancer treatments.

The following sections show the framework conditions that influence the capacity of the Zurich-Zug-Lucerne region for innovation. The indicators analysed include research and development expenditure, patent density and the research quality of regional universities.


RESEARCH AND DEVELOPMENT EXPENDITURE Share of regional GDP (in %), 2011

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Boston

Switzerland

Munich

SF Bay Area

Zurich-Zug-Lucerne

Oxford

Paris

New York

Milan

0% 6%2% 3% 4% 5%1%

Private sector expenditure University expenditure Rest

INNOVATION CAPACITY

High investments in R&DOverall, as a proportion of the regional Gross Domestic Product (GDP) of Zurich-Zug-Lucerne, R&D expenditure stands at about 3.5 percent. The region as a whole shows a very balanced funding of R&D expenditure, around half coming from the private sector and the other half from the public sector.

However, the cantons differ in their financing structures. While research spending in the cantons of Lucerne and Zug comes almost entirely from the private sector, Zurich benefits from its major universities (ETH and University of Zurich) and public funding.

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0.7 0.5

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REGISTERED PATENTS Number per million inhabitants, 2011

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Boston

SF Bay Area

Switzerland

Zurich-Zug-Lucerne

Munich

Paris

New York

Milan

London

0 16080 100 120 1406020 40

Pharmaceutical area Rest of life sciences

Catch-up potential in patent applicationsIn the Zurich-Zug-Lucerne region, almost 25 patent appli-cations per million inhabitants are filed every year in the field of pharmaceuticals. This puts the region slightly below the national average for Switzerland and well below the US American clusters of Boston and the San Francisco Bay Area, where more than 60 patent applications per mil-lion inhabitants are filed every year.

If the other life sciences sectors are added, the Zurich-Zug-Lucerne region arrives at around 60 patents per mil-lion inhabitants per year. This increase reflects the major importance of medical technology R&D in this region.

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INNOVATION CAPACITY

High quality of regional universitiesBy international standards, the universities of the Zurich-Zug-Lucerne region perform well and achieve an outstand-ing rating especially on the broad Shanghai Index. In the comparison of life sciences sites, for example, the region is ranked second behind the San Francisco Bay Area, well ahead of the Swiss average. And in the ranking of the world’s 100 best universities in the field of life sciences and agricultural sciences, the Zurich-Zug-Lucerne cluster can also hold its own with the best centres.

Shanghai IndexThe Academic Ranking of World Universities (ARWU) evaluates 1,000 universities around the world every year based on six indicators in four areas (quality of education and teaching staff, research output and size of institutions).


SHANGHAI INDEXAverage number of points per university, 2012

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SF Bay Area

Zurich-Zug-Lucerne

Boston

Munich

London

Switzerland

Øresund

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Paris

0 60502010 4030

SPECIALIZED SHANGHAI INDEX IN LIFE AND AGRICULTURE SCIENCESAverage number of points per university, 2012

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SF Bay Area

Boston

New York

London

Switzerland

Zurich-Zug-Lucerne

Munich

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Paris

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INWARD INVESTMENT FACTORS


In the course of globalization, companies are increasingly faced with decisions on where best to locate. While costs cannot be underestimated, non-quantifiable factors are also important elements of such decisions.

It is therefore essential for regions to constantly monitor and compare their own inward investment factors with those of other business locations. While hard factors such as taxation and regulations play an important role for com-panies, a qualified workforce is more interested in soft factors, such as education and training opportunities and the availability of research institutions.

The innovation-intensive pharmaceutical industry needs a wide selection of specialists, such as researchers, engi-neers, IT professionals and marketing experts. These peo-ple are increasingly mobile today and make decisions on where they want to work according to their life circum-stances. Soft factors therefore play an increasingly impor-tant role in the attractiveness of business locations.



A highly attractive locationInward investment factors substantially influence the growth potential of a region. The Attractiveness Index was developed by BAKBASEL to quantify this growth potential and make it internationally comparable. It includes four of the most important inward investment factors – taxation, accessibility, regulation and innovation – and indexes their scores for each region.

Canton Zug comes out on top in the international compari-son of attractiveness with a score of almost 120 points. This is due in particular to the region’s attractive tax sys-tem, good accessibility and strong innovation skills. Zurich and Lucerne follow in second and fourth place, respec-tively, and are likewise well ahead of international clusters such as Milan, Paris and Oxford.


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30%30%

20% 20%

Taxation Accessibility Regulation Innovation

Zug

Zurich

Cambridge

Lucerne

London

Oxford

Munich

Paris

Milan

100 105 110 115 120

BAKBASEL ATTRACTIVENESS INDEX Index (100 = average of Western Europe), 2012

COMPOSITION OF THE BAKBASEL ATTRACTIVENESS INDEX

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119.7

118.7

116.6

113.8

112.0

110.5

108.8

106.8

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Measure of regulation (Regulation Index) Indexed valuation based on indicators elaborated by the OECD and the Fraser Institute (0 = low level of regulation; 6 = high level of regulation).

Low levels of regulationThe intensity of market regulation has a significant impact on the attractiveness and the growth of a business loca-tion.

An international comparison of the way labour and prod-uct markets are regulated shows that Switzerland has rel-atively low levels of regulation. Only the Anglo-Saxon coun-tries have even lower levels of regulation, whereas France, Germany and Italy are subject to much stricter regulation in both markets.

BAKBASEL REGULATION INDEX

REGULATION OF PRODUCT MARKET

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France

Switzerland

Germany

ItalyEngland

USA

Denmark


Measure of taxation (Taxation Index) Effective average tax rate that considers all relevant tax rates and rules for a profitable company invest-ment or a highly qualified worker.

Attractive taxation systemAn international comparison shows that the Swiss regions enjoy a substantial advantage with their taxation system. None of the other life sciences clusters can offer a taxa-tion system as attractive as that of the Swiss regions. Both the tax burden on highly qualified employees and the taxation of companies in the international life sciences clusters are around twice as high as they are in the Zurich-Zug-Lucerne region.

BAKBASEL TAXATION INDEX

0.40

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0.20

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0.15 0.20 0.300.25 0.35 0.50 0.550.450.40 0.60

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London

MilanØresund

Munich

ZugLucerne

Zurich

BostonSF Bay Area

TAXA

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PANI

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TAXATION OF HIGHLY QUALIFIED MANPOWER

New York

Paris



Measure of accessibility (Accessibility Index) Indexed value that quantifies the accessibility of a region. It takes into account the time spent travelling, the frequency of connections and the attractiveness of the destinations (European regions weighted by their GDP).

Excellent accessibilityAccessibility is an important inward investment factor, because with increasing globalization the geographic location and transportation system of a region influence the degree to which it can participate in economic growth.

In an international comparison with other life sciences clusters, Canton Zurich comes out best in Switzerland in terms of accessibility, while Cantons Lucerne and Zug benefit above all from their proximity to Zurich and its air-port.

BAKBASEL ACCESSIBILITY INDEX Index (100 = average of Western Europe), 2012

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VT, B

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201

4.

London

Paris

Zurich

Munich

Zug

New York

Lucerne

Milan

Boston

100 125120115110105

119.6

118.7

113.4

111.0

110.7

110.3

108.6

107.6

106.6


Large number of international schoolsThe availability of international schools is a soft factor and thus relevant for recruiting highly qualified people. Zurich and also (in view of the size of their populations) Lucerne and Zug have a large number of international school pro-grammes. By international standards, therefore, the Zurich-Zug-Lucerne region enjoys top spot ahead of Lon-don, New York and Paris.

Availability of international schoolsNumber of courses offered by the International Baccalaureate Organization.

AVAILABILITY OF INTERNATIONAL SCHOOLS Number of offered programs per million inhabitants, 2013

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ce: I

BO, B

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201

4.

Zurich-Zug-Lucerne

Switzerland

New York

London

SF Bay Area

Boston

Munich

Milan

Paris

0 128 1062 4

10

9

5

5

3

3

3

2

1


OUTLOOK


Pharma Total economy

4.2%1.8%

1.8%4.4%

4.3%2.3%

1.9%

0% 1% 2% 3% 5%4%

Switzerland

Zurich

Zug

Lucerne

Forecasts for the pharmaceutical industry by BAK Basel Economics predict a value-added growth of at least 4 per-cent in the Zurich-Zug-Lucerne region from 2015 to 2020. This growth is likely to be twice as high as that of the over-all economy. It is thus probable that the Zurich-Zug-Lu-cerne region will also become increasingly important in the future as a life sciences cluster and will attract other companies.

LONG-TERM GROWTH FORECASTSEstimated annual growth of GVA, 2015-2020

4.0%

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ce: B

AKBA

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201

4.


AbbVieAbbVie is a global, research-based biopharmaceutical com-pany dedicated to the treatment of serious, mostly chronic diseases. Research and innovation are the foundations on which entrepreneurial activity is built. The therapeutic areas include immunology, virology, nephrology, neurology, anaesthesiology and oncology. AbbVie also has a strong pipeline. In the area of hepatitis C, AbbVie concluded what until now is the largest Phase III trial programme at the beginning of 2014 for fully oral, interferon-free therapy for the treatment of hepatitis C genotype 1 and received approval for the product from Swissmedic at the end of 2014. The global company with operations in more than 170 countries employs around 25,000 people. Around 130 highly motivated employees work at the headquarters of its Swiss branch in Baar (ZG).

www.abbvie.ch

COMPANY PROFILES


Alcon Alcon was founded in Fort Worth, Texas, in 1945 and has grown from a small optician’s business to the world’s lead-ing eye-care company and the second-largest division of Novartis. With its three businesses of Surgical, Pharma-ceutical and Vision Care, Alcon offers the most comprehen-sive range of eye-care products. Alcon employs more than 25,000 people in 75 countries worldwide and sells its products in 180 markets. At its four sites in Switzerland – Fribourg (FR), Geneva (GE), Rotkreuz (ZG) and Schaff-hausen (SH) – Alcon employs around 650 people in mar-keting, sales and customer service as well as research and production.

www.alcon.ch


COMPANY PROFILES

AmgenAmgen Inc., which is based in Thousand Oaks, California, was founded in 1980 as Applied Molecular Genetics Inc. and is one of the pioneers of industrial biotechnology. In 1989, Amgen established its European headquarters in Switzerland – and in 2002 the Swiss subsidiary followed. Amgen is committed to researching the latest biomedical prospects for the benefit of patients with serious diseases. The focus here is on the development, manufacture and marketing of innovative therapeutics for human medicine. Using modern methods of gene technology, Amgen is work-ing intensively on deciphering the complexity of diseases and understanding the fundamental principles of human biology.

www.amgen.ch


AstraZenecaAstraZeneca is a global biopharmaceutical company spe-cializing in the research, development, manufacture and marketing of prescription medicines. The company employs around 120 highly qualified people in Switzerland in Medical, Market Access, Sales, Marketing, Finance, Business Partnering and Human Resources. The most important therapeutic areas are cardiovascular diseases and metabolic disorders, cancer and also respiratory, inflammatory and autoimmune diseases. AstraZeneca is also active in the fields of gastroenterology, infectious diseases and neurosciences, where the company invests in selective activities and cooperations.

www.astrazeneca.com/schweiz


BayerBayer was founded in 1862 and is a global life sciences company today that combines expertise in both health-care and food security. Our focus on innovation is the key to the leading position we hold in our fields of expertise and the valuable contributions we make to society. Bayer employs more than 1,000 people in Switzerland today at its headquarters in Zurich and at other sites. We help patients by preventing, alleviating and curing diseases and improving methods of diagnosis. And we help to ensure an adequate supply of high-quality food and ani-mal feed and renewable plant-based raw materials.

www.bayer.ch

COMPANY PROFILES


Biogen IdecThe biotechnology company Biogen was founded in Geneva in 1978. In the 1980s, the company moved its headquarters to Boston, where the company engaged in research on the development of new medicines using recombinant DNA technology. The Nobel Prize has been conferred on two founding members of the company in the shape of Walter Gilbert (Chemistry) and Phillip Sharp (Med-icine). The headquarters of Biogen Idec International has been located in Zug since 2004. This is also the site of the Swiss subsidiary. In Switzerland, the company currently employs over 375 people. As one of today’s leading bio-tech companies, Biogen Idec researches and develops innovative treatments for patients with autoimmune and neurodegenerative diseases as well as for haemophilia.

www.biogenidec.ch


Bristol-Myers SquibbBristol-Myers Squibb is a world leading biopharmaceutical company that is focused on helping patients overcome serious diseases through the research, development and provision of innovative medicines. The company aspires to be a leader in its fields of research. In the fight against cancer, cardiovascular diseases, hepatitis B, HIV/AIDS and rheumatoid arthritis it thus strives to provide people all over the world with life-improving treatments through its medicines. Bristol-Myers Squibb has already had a pres-ence in the Swiss pharmaceutical market for more than 50 years and in view of the importance of the site nationwide, the Swiss subsidiary is closely involved in international research. The company employs a total of 81 people in the Zug region.

www1.bms.ch

COMPANY PROFILES


Gilead / Gilead Sciences Switzerland SàrlGilead is a leading pharmaceutical company with head-quarters in California, USA, which develops innovative medicines for life-threatening diseases. A major concern of Gilead is to provide patients with medicines that are highly effective and easy to use in day-to-day life, e.g. through the combination of several active ingredients in one tablet. The range of treatments includes e.g. products for the treatment of HIV/AIDS, hepatitis B and C and cancer. At the same time, patients in developing countries are given access to innovative medicines at affordable prices through Gilead’s ACCESS programme. The company, with core competency in research and development and a cor-respondingly high-quality pipeline, has more than 7,000 employees worldwide. The Swiss branch based in Zug cur-rently employs around 30 people.

www.gilead.com


JanssenJanssen is a subsidiary of Johnson & Johnson and is one of the world’s leading research-based pharmaceutical compa-nies with 40,000 employees worldwide and branches in around 50 countries. The Swiss branch of Janssen, which is based in Zug, employs around 100 people. Janssen is engaged in research primarily in the therapeutic fields of oncology, immunology, infectious diseases, neurosciences and also cardiovascular and metabolic disorders. Janssen has developed more than 80 medicines to date, including some ground-breaking substances, which help countless patients throughout the world. Five medicines have been included in the WHO list of essential medicines.

www.janssen-cilag.ch

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COMPANY PROFILES


LundbeckLundbeck (Schweiz) AG is the subsidiary of the Danish pharmaceutical company of the same name and was established in 1948. The pharmaceutical company H. Lundbeck A/S is majority owned by the Lundbeck Founda-tion, which was established in 1954. The Lundbeck Foun-dation grants funds amounting to 60 to 80 million francs a year for independent research. The company H. Lundbeck A/S invests in the research of new medicines for the treat-ment of diseases of the central nervous system, such as depression, anxiety disorders, schizophrenia, bipolar dis-order, alcohol dependence, Alzheimer’s dementia and Par-kinson’s disease. Lundbeck is actively committed to improving knowledge about diseases and their impact on the quality of life of patients and on those around them. The company employs 46 people in Switzerland.

www.lundbeck.com/ch


Merck Merck KGaA, with its headquarters in Darmstadt, Ger-many, is a global pharmaceutical and chemical company with more than 40,000 employees in 67 countries. Merck Serono is the largest division of Merck and is committed to the improvement of health and the development of new treatments. It is focused on highly specialized therapeutic areas, such as cancer, multiple sclerosis and infertility. Merck helps patients cope with life and strives to improve and prolong life for patients. The company employs more than 1,400 people in Switzerland at sites in Aubonne, Coin-sins, Corsier-sur-Vevey, Eysins, Zug, Altdorf and Schaff-hausen. While active ingredients for medicines are pro-duced in Altdorf, among other things, the site in Zug serves as the sales organization of Merck Serono for Switzerland.

www.merck.ch

COMPANY PROFILES


MSD (Merck Sharp & Dohme)MSD is a world leading company that is focused on health and well-being. MSD is the protected name outside of Canada and the USA of Merck & Co., Inc., with headquarters in Kenil-worth, New Jersey, USA. The headquarters of MSD in Switzer-land are in Lucerne. At a total of four sites, the company employs more than 600 highly qualified people from all over the world in research and development, production, global central functions as well as marketing for human and veteri-nary medicine. Not only is the Swiss market serviced from Lucerne, but also more than 70 branches in the European region, the Middle East, Africa, Brazil, India and China are sup-ported from there. MSD in Switzerland is committed to the improvement of healthcare skills and supports medical research projects.

www.msd.ch


Novartis Pharma SchweizNovartis Pharma Schweiz is a subsidiary of the international Novartis Group. At its site in Rotkreuz, the company shares a modern office building with the three other Novartis divi-sions OTC, Alcon and Sandoz. Novartis Pharma Schweiz is the largest of these four divisions – and, in terms of sales, is also the largest pharmaceutical company on the Swiss market. The 230 or so employees of this business unit market the more than 100 prescription medicines of the Novartis Group in Switzerland. The most important therapeutic areas include, for example, neurological disorders, eye care, transplanta-tion medicine, general medicine, oncology and influenza vaccines.

www.novartispharma.ch

COMPANY PROFILES


Pfizer“Working together for a healthier world”: Pfizer follows this guiding principle worldwide. The biopharmaceutical com-pany stands for the successful research and development of innovative medicines – and has done for more than 160 years. Pfizer thus makes an important contribution to the prevention and treatment not only of widespread disor-ders, but also of rare diseases. In Switzerland, Pfizer has been based in Zurich since 1959. With around 200 employ-ees and a product range comprising more than 120 medi-cines, Pfizer AG is one of the most important pharmaceuti-cal companies in the country. It is the objective of Pfizer AG to make an important contribution to the healthcare of the local population.

www.pfizer.ch


Roche site in RotkreuzRoche Diagnostics International AG in Rotkreuz, Canton Zug, is one of the world’s leading suppliers of diagnostic system solutions for hospitals, laboratories and medical practices. The company is part of the Diagnostics Division of the Roche Group with headquarters in Basel. Roche Diagnostics Inter-national AG has been based in Canton Zug since 1969, where it employs more than 2,200 people from over 50 nations today. All the central functions of the diagnostics business are housed together at the Rotkreuz site. Rotkreuz is home to the headquarters of Professional Diagnostics, which sup-plies diagnostic analytical systems and workflow solutions for laboratories, hospitals and doctors. The site is also a global centre of the business unit Molecular Diagnostics, which develops molecular diagnostic reagents and test sys-tems. The headquarters of the EMEA / LATAM region is also located in Rotkreuz, as is the Swiss sales organization of the Diagnostics Division.

www.roche.ch/rotkreuz

COMPANY PROFILES


Vifor PharmaVifor Pharma, the pharmaceutical division of the Galenica Group, is one of the world’s leading companies in the research, development, production and marketing of phar-maceutical products for the treatment of iron deficiency disorders. The company also offers a diversified portfolio of prescription medicines and over-the-counter (OTC) products. The international headquarters is located in Glattbrugg (Zurich). Vifor Pharma also has four sites in Switzerland for production and research & development. The company employs more than 1,000 people in Glattbrugg, St. Gallen, Villars-sur-Glâne (Fribourg), Ettin-gen (Baselland) and Meyrin (Geneva).

www.viforpharma.ch www.viforpharma.com


GLOSSARY

ARWU Academic Ranking of World UniversitiesESA European System of Accounts FCA Federal Customs Administration, SwitzerlandFSO Federal Statistical Office, SwitzerlandFTE Full-time equivalentGDP Gross Domestic Product GVA Gross value addedIBO International Baccalaureate Organization IVT Institute for Transport Planning and SystemsNOGA Nomenclature générale des activités économiquesOECD Organization for Economic Co-operation and DevelopmentPPP Purchasing power parityZEW Centre for European Economic Research

Note: The source “BAKBASEL, 2014” refers to data from September 2014.

Publishing informationPublisher:InterpharmaAssociation of research-based pharmaceutical companies in SwitzerlandPetersgraben 35P.O. Box4009 BaselPhone: +41 61 264 34 00E-mail: [email protected]

The content of this brochure can also be found on the website of Interpharma at www.interpharma.ch. Readers are free to download and use the charts in their latest version for their own purposes provided the sources are properly quoted.

Design: Continue AG, BaselPrinted by: Steudler Press, Basel Images: © getty images (cover); © F. Hoffmann-La Roche Ltd (p. 10 and 44); © Niklaus Wächter (p. 20 and 36); © Interpharma (p. 30)

Copying of the brochure is encouraged provided the sources are duly quoted.

Deutsche Originalversion verfügbar

© Interpharma, February 2015

InterpharmaPetersgraben 35, P.O. BoxCH-4009 BaselPhone +41 (0)61 264 34 00Fax +41 (0)61 264 34 [email protected]

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