Swiss medtech sector remains on course for growth despite EU hurdles
Published: Thursday, Sep 12th 2024, 06:30
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The Swiss medtech industry has grown strongly in recent years. The industry is concerned about cost pressure and European Union regulations.
The medical technology sector generated sales of 23.8 billion Swiss francs in 2023, according to a study published on Thursday by the Swiss Medtech Association. In the last two years, the industry has grown by over 6 percent, twice as fast as Switzerland's nominal gross domestic product.
According to the study, around 20,000 jobs have been created in this country over the last ten years thanks to the industry, including 4,200 in the last two years alone. The number of employees has now grown to 71,700. This means that more than one in every hundred workers in Switzerland is employed in medical technology, which underlines the economic importance of the industry.
According to the study, the sector also achieved a trade surplus of 5.8 billion Swiss francs last year. The EU remained the industry's most important trading partner: around half of Swiss medtech exports went to the EU.
EU regulation hindered
The European Medical Device Regulation (MDR) is not well received within the Swiss medtech industry: This is "bureaucratic, costly and inhibits innovation". According to the report, 80% of companies have hired new staff to deal with the regulation and 60% have had to divert human resources from the area of "research and development".
This is also reflected in the costs: overall, the expenses for development have risen by an average of around 28% in the last two years. In addition, product costs have risen by 13 percent and prices by 8 percent. However, this was also due to higher raw material, energy, transportation and logistics costs, according to the study.
Looking towards the USA
Due to the bureaucratic hurdles in Europe, Swiss medtech companies are increasingly focusing on the USA. According to the report, 20 percent of companies are already applying for initial approval for their latest products in the USA rather than Europe. Over 30 percent certify their products in both Europe and the USA, although the process is much more lengthy in Europe.
According to the survey, this also leads to years of delays in the introduction of new products in Switzerland. The industry association hopes that the requirement for approval of FDA-certified medical devices in Switzerland will be implemented "quickly and practically".
AI and digitalization as an opportunity
The association sees great opportunities in advancing digitalization and artificial intelligence (AI). According to Adrian Hunn, Director of Swiss Medtech, Switzerland must play a pioneering role in the digitalization and application of AI in order to ensure the competitiveness of medtech production in Switzerland as a high-price country.
However, this process also poses challenges: companies have to invest in security systems and data protection measures and take legal issues into account.
Survey with 470 companies
The industry study by the Swiss Medtech Association in collaboration with the Helbling Group is published every two years. The study is based on a survey in which over 470 medtech companies operating in Switzerland reportedly took part.
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