Intricacy, precision, and quality. These are bywords for Switzerland’s world-renowned watchmaking industry, but which could equally apply to its biopharmaceutical manufacturing footprint. As with top-end models from Rolex, Tag Heuer, or Breitling, made-in-Switzerland pharmaceuticals do not necessarily come cheap, but the country’s network of life science manufacturers seem content that their products more than justify their price tags.
Not only do Swiss-headquartered pharma heavyweights like Roche and Novartis boast advanced manufacturing operations in the country, but a host of Swiss contract manufacturing and development organisations (CDMOs) – most notably Lonza – have been leveraging local expertise and infrastructure to serve global demand. Moreover, with geopolitical concerns rendering China an increasingly problematic investment destination, perhaps the time is right for European countries like Switzerland to take on an even greater global share of advanced biopharmaceutical manufacturing.
“What we are seeing now is a resurgence in the development and production of chemical APIs returning to Europe,” explains Stefan Berg of PharmaPlan, which constructs labs and factories for the biopharmaceutical industry. “A decade ago, much of this work was taking place overseas in countries like India and China. However, now there is significant investment in chemical API production, and we are seeing it right here in Switzerland. This shift has been driven largely by the impact of COVID, which exposed vulnerabilities in global supply chains and highlighted the need to reduce dependency on countries like China.”
Global pharma is already well established in the country. Belgian headquartered UCB, for its part, has had a manufacturing footprint in Switzerland since 1996 and its Bulle site today plays a key role in the company’s global microbial manufacturing operations. Reflecting on why the firm decided to open a Swiss site in the ‘90s – and why it still makes sense today – UCB Bulle Campus Site Head Fabrice Véricel explains that beyond some of the initial tax incentives available in the country “the key motivation for expanding in Switzerland was its political and social stability—an essential foundation for long-term manufacturing operations.” He adds, “access to a rich talent pool was another key motivator. Our proximity to institutions such as the École Polytechnique Fédérale de Lausanne (EPFL) allows us to forge strong academic-industry partnerships, tapping into a steady stream of top-tier talent.”
Other global pharma heavyweights have followed suit, with Switzerland becoming a key node in their global supply chains. “Our Swiss manufacturing facility produces clinical supplies, which are distributed to over 50 countries, benefiting more than 60,000 patients involved in clinical trials globally,” lays out Dimitri Gitas, the Switzerland managing director of US giant Merck (known as MSD outside of the US and Canada). “Looking ahead, by 2026, we will be consolidating three of our Lucerne sites into a new state-of-the-art building, covering 15,000 square meters and accommodating 850 employees. This investment reflects our long-term commitment to Switzerland as a critical hub for our global operations.”
The German firm Merck KGaA (a separate company to their US namesake) also boasts wide-ranging Swiss manufacturing operations, with Country President Florian Schick describing Switzerlandas “a global hub for our biotech production.” He adds, “Our Life Science Operations sites in Buchs, Schaffhausen and Altdorf serve customers in the (bio)pharmaceutical industry with everything they need from the discovery of new drug substances to the manufacturing of finished drug products such as Active Pharmaceutical Ingredients (APIs).”
While Sanofi does not yet have a manufacturing footprint in Switzerland, Country Lead & General Manager Specialty Care Michael Kubischik feels that the country has all the ingredients to capitalise on global trends. “As manufacturing shifts from traditional small-molecule drugs to complex biopharmaceuticals and novel therapies, production site decisions increasingly hinge on specialized expertise rather than geography alone,” he notes. “Switzerland’s reputation aligns well with these evolving demands, and in the future, its advanced capabilities could position it as a key hub for certain high-skill manufacturing.”
And it is not just Big Pharma looking to Switzerland as a manufacturing hub. US-headquartered biotech Incyte, for example, which had previously relied on CMOs and CDMOs for production of its medicines, began construction on its first global manufacturing facility for biologics in Yverdon, Canton Vaud in 2019. The site is now fully operational, producing Incyte’s first commercially available biologic product, and is slated to manufacture other bispecific antibodies in the future.
“Choosing Switzerland as the location for this facility was a strategic decision based on the country’s reputation for precision and quality,” explained Jonathan Dickinson, Incyte’s former general manager for Europe, earlier this year (Dickinson has since left the company). “In biologics manufacturing, where even minor contamination can result in millions of euros in losses, quality is non-negotiable. The expertise available in Switzerland made it the ideal choice, despite potentially lower costs elsewhere.”
This is a sentiment echoed by Isabelle Dahinden, Switzerland general manager for CSL Behring; the global leader in the challenging niche of plasma-derived therapies. Switzerland plays host to a major CSL manufacturing facility, which Dahinden boasts “when operating at full capacity can produce enough plasma-derived product in a day to fill a football stadium.” The country’s reliable regulatory framework, the quality of its people and processes, and the openness of Swiss institutions – including the Swiss Red Cross, with which CSL partners on blood donations – are all crucial factors in the company’s decision to manufacture in Switzerland.
“Manufacturing these therapies introduces unique complexities,” says Dahinden. “With each product taking between seven and 12 months to process, we must continuously plan for the future. This involves analysing current and projected market needs, disease prevalence, and anticipated regulatory approvals to ensure supply stability. Every step, from collection to final product, must be adapted to the anticipated market demand. This could be even as far as a year in advance to meet the needs of expanding indications and patient access in new regions.”
Switzerland maintaining its status as a life sciences manufacturing hub is not, however, a given. Regulatory stringency, for example, assures a high level of quality but overburdensome rules can force firms to look elsewhere to invest. Looking from the European perspective, Stephan Mumenthaler of industry association scienceindustries posits that “The European Union’s Green Deal introduces various regulations that, while aimed at enhancing sustainability, complicate production processes across Europe, including in Switzerland.” Mumenthaler continues, “For instance, regulations related to deforestation, sustainable energy usage, and carbon border adjustments have laudable aims, but impose significant implementation challenges on businesses. The key lies in achieving a delicate balance between the ambitious goals of these regulations and the operational burdens they place on companies.”
GLP-1 Obesity/Diabetes Drug Demand Soars: Swiss Manufacturers Stepping Up
Obesity and diabetes incidence are soaring, as is global demand for the latest generation of weight loss drugs, with a few key Swiss peptide manufacturers set to play an important role in meeting this demand. GLP-1 (glucagon-like peptide-1) receptor agonists like Novo Nordisk’s Wegovy and Eli Lilly’s Zepbound rely on peptides – short chains of amino acids that act as signalling molecules in the body – which mimic the hormones that regulate appetite and metabolism. This is an extremely hot area for pharma, with a host of actors attempting to follow the path paved (and record-breaking profits already achieved) by these companies.
“The market for diabetes and obesity treatments, particularly those centred around GLP-1 (glucagon-like peptide-1) therapies, is poised for remarkable growth,” says Michael Quirmbach, CEO & president of CDMO CordenPharma, which currently dedicates one of its six technology platforms to GLP-1 peptide manufacturing. “Analysts project that by 2030, the obesity treatment sector alone could reach approximately EUR 130 billion, presenting substantial opportunities for manufacturers, including CDMOs like ours,” he adds.
To this end, CordenPharma recently made a EUR 900 million investment in enhancing its peptide platform to increase capacity for the manufacturing of GLP-1 APIs. “This funding will also facilitate new peptide projects, both in terms of clinical development and commercial production,” explains Quirmbach. “We are primarily focusing this investment within our European facilities, particularly in Switzerland, where we have identified suitable industrial parks with the necessary infrastructure to support large-scale chemical operations.”
Another peptide-focused CDMO, Bachem, is also poised to play its part. “A cornerstone of our expansion strategy is the construction of a new, advanced manufacturing facility, anticipated to come online in the second half of 2024,” says CEO Thomas Meier. “This facility represents a new era for peptide production, with capabilities to operate around the clock in a fully controlled and highly automated environment. By focusing on continuous production in tightly regulated systems, we’re preparing to meet large-scale demands with the precision and reliability the industry requires.”
Meier adds, “Meeting this huge demand requires substantial production volume, which also brings a need for greener chemistry to maximize efficiency by reducing raw material input while increasing output. Innovating sustainable manufacturing processes is a core focus for us as we look toward the future.”
