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“We know nothing about price increases; a 16-pack of Dafalgan 500 still costs 2.99 euros.” This is what an employee of a pharmacy belonging to the Pharmabest chain in Etrembières (F) in Etrembières, not far from Geneva, said when asked by Blick.
This is surprising. Blick reported that prices for the antipyretic drug Dafalgan have recently doubled in Switzerland. Official reason for the manufacturer UPSA: Relocation of the production of the main active ingredient paracetamol from foreign regions (mainly India, but also the USA and China) to a new production facility in Roussillon (F). The operator here is Seqens company. Pharmaceutical companies UPSA and Sanofi are located at the facility.
This means that Dafalgan’s prices will also increase in France and Belgium: The drug is sold in Switzerland and these two countries. However, a test conducted at the Dansaert pharmacy in Brussels, Belgium, shows that there has been no recent price increase there. The price of a 16-pack of Dafalgan is 3.55 euros, an employee reported over the phone.
Price of safe supply
UPSA Switzerland president Patrick Leimgruber (39) explains to Blick’s question that the markets are regulated differently: “In Belgium, there have been many price increases in recent years to guarantee availability.”
Leimgruber admits that UPSA has not yet been affected by the supply bottlenecks common in the industry. However, the company also wants to ensure the supply security of the drug, which is in high demand. The UPSA fundamentally welcomes the low price policy of the Federal Office for Public Health (BAG), which prevents rising healthcare costs in Switzerland. “But this means that the industry is increasingly producing outside Europe or withdrawing products from the Swiss market altogether for reasons of economic efficiency,” says Leimgruber. However, this also brings risks.
UPSA is now taking the opposite approach: like companies in other sectors, the group is pulling production from cheaper countries. And this has a price. “So we decided to launch the 16-pack and increase the selling price,” concludes Leimgruber.
Only the 16-pack has become more expensive
UPSA has set a selling price “usually less than 5 francs”, but the specific price may vary depending on the trading partner. “The pharmacy determines the final price that customers pay at the pharmacy,” says Leimgruber.
It is important that the price of Dafalgan’s other packaging sizes does not change: BAG determines the sales price for drugs in the specialty list. This also includes Dafalgan 500 prescription in 30 and 100 packs.
Big price difference
These statements are unlikely to be heard well by customers in Switzerland: they now pay 5.30 to 5.90 francs for a 16-pack. In France and Belgium, this figure is between 3 and 4 euros, equivalent to 2.80 to 3.75 francs. This means that the package in Switzerland is approximately twice as expensive, depending on the provider comparison. In Germany, where Dafalgan is not sold as a brand, online pharmacy Doc Morris offers alternative products containing paracetamol for prices below 1 euro.
Leimgruber mentions here “the different regulations of the markets, the different margin structures of the pharmacies, the import costs in Switzerland and the high operating costs in Switzerland.”
Can’t say whether Dafalgan will become more expensive in France soon. For now, high production costs are primarily reflected in Switzerland.
Source :Blick
I’m Tim David and I work as an author for 24 Instant News, covering the Market section. With a Bachelor’s Degree in Journalism, my mission is to provide accurate, timely and insightful news coverage that helps our readers stay informed about the latest trends in the market. My writing style is focused on making complex economic topics easy to understand for everyone.
