Introduction
Swiss pharma reckons with its past, present and futureJessica Davis Plüss (Text), Helen James (layout/photo editor), Veronica DeVore (editor)
The world
has been looking to the pharmaceutical industry for a way out of the most
devastating pandemic in 100 years. Switzerland has been a global pharma hub for
nearly that long. This is the story of how making drugs helped turn a small,
mountainous country into an industry titan, and how its pharma companies
reacted when confronted with the biggest public health crisis in
generations.
From the Rhine to the world
originsFrom the Rhine to the world
Long before there were vials of vaccines and packages of pills, there were vats filled with dye. The pharmaceutical industry in Switzerland grew out of the chemical dyestuff industry serving the booming silk and textile trade in Europe.
By the late 19th century, Gesellschaft für Chemische Industrie in Basel (later known as Ciba), Geigy (J.R. Geigy), and Kern & Sandoz (eventually Sandoz) were household names in Basel. Today, only the Sandoz name remains in the pharmaceutical world, but they all shaped what is today known as Novartis.
Shortly after, in 1896, F. Hoffmann-La Roche & Co (known today as Roche) applied some of the chemistry know-how to the medicine business, becoming the first company in Basel to focus exclusively on pharmaceutical products.
Photo: The Geigy plant, Grenzach, Germany in 1924. (Novartis AG)
By the late 19th century, Gesellschaft für Chemische Industrie in Basel (later known as Ciba), Geigy (J.R. Geigy), and Kern & Sandoz (eventually Sandoz) were household names in Basel. Today, only the Sandoz name remains in the pharmaceutical world, but they all shaped what is today known as Novartis.
Shortly after, in 1896, F. Hoffmann-La Roche & Co (known today as Roche) applied some of the chemistry know-how to the medicine business, becoming the first company in Basel to focus exclusively on pharmaceutical products.
Photo: The Geigy plant, Grenzach, Germany in 1924. (Novartis AG)
origins
Basel had several advantages as a location: it had good transportation links situated on the border of France and Germany and it was already a hub for the textile and silk ribbon industry in the Upper Rhine that relied heavily on dyestuff. The Rhine provided water for manufacturing and was also a convenient location to dispose of toxic waste from dye factories.
In addition, Switzerland didn’t have any patent protection on chemical processes until 1907, which allowed Basel companies to produce foreign products without any problems.
Photo: Sandoz Basel. The first Kern & Sandoz factory at St. Johann, around 1890. (Novartis AG)
In addition, Switzerland didn’t have any patent protection on chemical processes until 1907, which allowed Basel companies to produce foreign products without any problems.
Photo: Sandoz Basel. The first Kern & Sandoz factory at St. Johann, around 1890. (Novartis AG)
originsThe chemistry of three giants
The companies that became Novartis got their start trading raw materials, developing synthetic dyestuff, and crafting colourful labels for consumer goods.
Ciba, Geigy and Sandoz were part of the golden age of chromolithography in Europe. Up until the 1930s, dye packets with colourful labels from Basel flooded markets in Asia.
Photo: Prints of aniline blue from a manufacturing inspection register. (Novartis AG)
Ciba, Geigy and Sandoz were part of the golden age of chromolithography in Europe. Up until the 1930s, dye packets with colourful labels from Basel flooded markets in Asia.
Photo: Prints of aniline blue from a manufacturing inspection register. (Novartis AG)
The Basel companies “created works of art that reflected the tastes and culture of an international clientele”.Novartis corporate history
Illustration: A Geigy label for Hong Kong. François Appel printing company, Paris. Appel worked for the major firms in Europe from 1875 to 1890. (Novartis AG)
originsFrom dyes to medicine
At the end of the 19th century, the Basel dye companies found that some of the know-how and raw materials for synthetic dyestuff could be used to produce medicine.
The chemical companies entered the pharmaceuticals business, albeit hesitantly. But these products proved profitable early on.
In 1914, only 10% of Sandoz’s turnover was from pharmaceuticals. By 1952 the pharmaceutical sector was the strongest part of the company’s sales.
Photo: Sandoz in the 1930s (Novartis AG)
The chemical companies entered the pharmaceuticals business, albeit hesitantly. But these products proved profitable early on.
In 1914, only 10% of Sandoz’s turnover was from pharmaceuticals. By 1952 the pharmaceutical sector was the strongest part of the company’s sales.
Photo: Sandoz in the 1930s (Novartis AG)
origins New arts, new skills
Over the years, companies were sold, bought and merged. The merger of Ciba and Geigy – once fierce competitors – surprised many in Basel because of their strikingly different corporate cultures. Years after the merger, employees still felt a sense of loyalty to the former Ciba or Geigy.
In 1996, when Sandoz merged with Ciba-Geigy to create Novartis, it was the biggest corporate merger ever in the Basel commercial registry. To this day, it is considered one of the largest-ever corporate mergers in Switzerland. The name Novartis was inspired by the Latin words “novae artes”, meaning “new arts or skills”.
Many other Swiss multinationals such as Syngenta and Clariant can also trace their roots back to the Basel chemical industry.
TIMELINE
1758 Geigy
1873 Gesellschaft für Chemische Industrie (Ciba in 1945)
1886 Kern & Sandoz (Sandoz in 1939)
1896 Roche
1970 Ciba & Geigy Merger
1996 Novartis
Photo: (Keystone)
In 1996, when Sandoz merged with Ciba-Geigy to create Novartis, it was the biggest corporate merger ever in the Basel commercial registry. To this day, it is considered one of the largest-ever corporate mergers in Switzerland. The name Novartis was inspired by the Latin words “novae artes”, meaning “new arts or skills”.
Many other Swiss multinationals such as Syngenta and Clariant can also trace their roots back to the Basel chemical industry.
TIMELINE
1758 Geigy
1873 Gesellschaft für Chemische Industrie (Ciba in 1945)
1886 Kern & Sandoz (Sandoz in 1939)
1896 Roche
1970 Ciba & Geigy Merger
1996 Novartis
Photo: (Keystone)
“By joining forces, they catapulted themselves not only into the top ranks in the chemical industry but the new Novartis will be one of the biggest companies ever.”Neue Zürcher Zeitung (Day after the merger announced that would create Novartis, March 8, 1996)
Photo: Draft of the logo of the newly merged Novartis Group, 1996. (Keystone)
originsKeeping it in the Roche family
While Novartis was the product of mergers over the years, Roche has maintained its name since its start as a pharmaceutical company.
It was founded on October 1, 1896 by Fritz Hoffmann-La Roche when he was just 28. He died in 1920 at a time of uncertainty about the firm's future. The year before, the firm's poor financial outlook led him to transform the company into a public limited company.
The founding family eventually acquired controlling interest in the company. Some 125 years later, the majority of voting shares are still held by descendants of the founder.
In 2001, Novartis bought shares in Roche after some talks of a merger between the companies that never materialised. Novartis has held one-third of the shares, making it the second largest shareholder in terms of voting rights after the Roche family.
Photo: Fritz and Adèle Hoffmann (F. Hoffmann-La Roche Ltd, Basel)
It was founded on October 1, 1896 by Fritz Hoffmann-La Roche when he was just 28. He died in 1920 at a time of uncertainty about the firm's future. The year before, the firm's poor financial outlook led him to transform the company into a public limited company.
The founding family eventually acquired controlling interest in the company. Some 125 years later, the majority of voting shares are still held by descendants of the founder.
In 2001, Novartis bought shares in Roche after some talks of a merger between the companies that never materialised. Novartis has held one-third of the shares, making it the second largest shareholder in terms of voting rights after the Roche family.
Photo: Fritz and Adèle Hoffmann (F. Hoffmann-La Roche Ltd, Basel)
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originsRise of a pharma hub
The presence of Novartis and Roche is a key reason for Switzerland’s reputation as a pharma hub. But the country is also home to hundreds of foreign pharma giants, smaller biotech firms, manufacturers, healthcare start-ups and service providers.
In 1980, the pharmaceutical industry’s share of the Swiss economy's gross value added was around 1%. Today it is around 5%. In 2020, nearly 45% of all Swiss exports were pharmaceuticals.
The European Union is the most important market for Swiss pharmaceuticals (50%) but the United States is the most important single country. In the last 20 years, exports to the US doubled from 11% to 24%.
In 1980, the pharmaceutical industry’s share of the Swiss economy's gross value added was around 1%. Today it is around 5%. In 2020, nearly 45% of all Swiss exports were pharmaceuticals.
The European Union is the most important market for Swiss pharmaceuticals (50%) but the United States is the most important single country. In the last 20 years, exports to the US doubled from 11% to 24%.
“The chemical and pharmaceutical industry is the only Swiss industry that could really establish itself successfully in the US.”Tobias Straumann, economic historian
Photo: Aerial view of the campus and headquarters of bio-pharmaceutical company Genentech, in South San Francisco, California. (alamy.com)
originsBecoming a global player
Thanks to the dye business, the Basel companies were able to get an early foothold abroad. As the industry moved into pharmaceuticals, the small domestic market in Switzerland meant that growing internationally was the only way to compete.
As early as 1912, Roche established a so-called "scientific office" in Yokohama and liaised closely with the leading professors in Japan. Ciba followed suit with a scientific office and sales group in Osaka.
In the first half of the 20th century, Swiss companies set up foreign subsidiaries or branches as far away as China, Japan, Russia, Argentina and Brazil to lower production and transport costs, and to circumvent import restrictions.
The companies navigated delicate geopolitical dynamics with the help of Switzerland's policy of neutrality. This was tested during the Second World War when Basel firms signed deals with the Nazi regime. Roche also used the labour resources of prisoners-of-war. However, it also relocated numerous Jewish scientists from its Berlin offices, saving them from persecution.
Photo: Premises of CIBA Shanghai. Around 1938. (Novartis AG)
As early as 1912, Roche established a so-called "scientific office" in Yokohama and liaised closely with the leading professors in Japan. Ciba followed suit with a scientific office and sales group in Osaka.
In the first half of the 20th century, Swiss companies set up foreign subsidiaries or branches as far away as China, Japan, Russia, Argentina and Brazil to lower production and transport costs, and to circumvent import restrictions.
The companies navigated delicate geopolitical dynamics with the help of Switzerland's policy of neutrality. This was tested during the Second World War when Basel firms signed deals with the Nazi regime. Roche also used the labour resources of prisoners-of-war. However, it also relocated numerous Jewish scientists from its Berlin offices, saving them from persecution.
Photo: Premises of CIBA Shanghai. Around 1938. (Novartis AG)
originsMaking it big in America
In 1919, when the Basel chemical firms were discussing whether to set up a presence in the US, board members were divided. On the one hand, they didn’t like the “egoistic” way of doing business in the US and the companies worried about their secrets being stolen by the Americans.
On the other hand, “America is the land of the future,” wrote one board member. “When we don’t seize the moment to set up production now, we will be totally shut out in a few years”. A year later, the Basel firms bought an old dye factory in Cincinnati, Ohio.
Roche also set up a plant in Nutley, New Jersey early on that proved fortuitous during the World Wars. By 1943, its Nutley office represented half of the group's turnover.
Photo: Factory of Ault & Wiborg Co. Cincinnati, Ohio jointly bought by the Basel chemical firms. (Novartis AG)
On the other hand, “America is the land of the future,” wrote one board member. “When we don’t seize the moment to set up production now, we will be totally shut out in a few years”. A year later, the Basel firms bought an old dye factory in Cincinnati, Ohio.
Roche also set up a plant in Nutley, New Jersey early on that proved fortuitous during the World Wars. By 1943, its Nutley office represented half of the group's turnover.
Photo: Factory of Ault & Wiborg Co. Cincinnati, Ohio jointly bought by the Basel chemical firms. (Novartis AG)
origins
origins
Photo: Samuel Koechlin, the first CEO after the Ciba-Geigy merger in 1970, was inspired by his time in the US, bringing back management theories that boosted growth and broke down Swiss internal hierarches and structures. (Novartis AG)
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The post-war period was a boon for the Swiss pharmaceutical industry but it also faced more competition from across the Atlantic.
As German companies struggled, British and American companies filled the gap, driven forward by the discovery of penicillin and other antibiotics.
But the so-called "Therapeutic Revolution" in the mid-20th century benefited the industry everywhere as investment in research for new medicines soared.
Sales boomed in the two decades following the Second World War and the Basel companies cemented their place as major global players.
As German companies struggled, British and American companies filled the gap, driven forward by the discovery of penicillin and other antibiotics.
But the so-called "Therapeutic Revolution" in the mid-20th century benefited the industry everywhere as investment in research for new medicines soared.
Sales boomed in the two decades following the Second World War and the Basel companies cemented their place as major global players.
Photo: Samuel Koechlin, the first CEO after the Ciba-Geigy merger in 1970, was inspired by his time in the US, bringing back management theories that boosted growth and broke down Swiss internal hierarches and structures. (Novartis AG)
Competing for the best minds
TalentCompeting for the best minds
The first
jobs in the Swiss chemical industry involved creating products for the masses
by the masses. They were largely factory jobs - well-paid relative to other jobs at the
time but also dirty and dangerous. This
changed with the shift to pharmaceuticals, where employees were packaging pills
or working in labs rather than cleaning vats of dye. Securing a top-tier
scientist also brought prestige, accolades and profits.
In 1937, there were about 4,300 workers in the chemical and pharma industry in Basel. In 2018, about 32,000 people worked in the Life Sciences industry.
Photo: Parasitology laboratory at the Sandoz Research Institute in Austria. (Novartis AG)
In 1937, there were about 4,300 workers in the chemical and pharma industry in Basel. In 2018, about 32,000 people worked in the Life Sciences industry.
Photo: Parasitology laboratory at the Sandoz Research Institute in Austria. (Novartis AG)
The work in chemical and dye factories was considered “too dirty and dangerous to be done by women's hands”. Nicholas Schaffner, cultural historian
Photo: Sandoz, Basel. Dye workers emptying the filter press, 1950. (Novartis AG)
TalentBringing in women
The industry’s move towards pharmaceuticals also opened the door for women. With the rise of pharmaceuticals and the need for internal management, women were hired as secretaries or in packaging.
Of 101 professional titles at Ciba in 1954, ranging from archivists to zoologists, four were classified as “explicitly female” positions (using the feminine form in German). These were billing clerks, welfare clerks, secretaries, and cleaners, according to a survey conducted that year.
The workforce was 89.6% male and 10.4% female, the survey found. Today, 45% of Novartis employees are women.
Photo: The roof of the Sandoz packaging factory in Basel,1959. (Novartis AG)
Of 101 professional titles at Ciba in 1954, ranging from archivists to zoologists, four were classified as “explicitly female” positions (using the feminine form in German). These were billing clerks, welfare clerks, secretaries, and cleaners, according to a survey conducted that year.
The workforce was 89.6% male and 10.4% female, the survey found. Today, 45% of Novartis employees are women.
Photo: The roof of the Sandoz packaging factory in Basel,1959. (Novartis AG)
Talent
Talent
Alice Keller. Photo: (Courtesy F. Hoffmann-LaRoche Ltd, Basel)
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A few women were able to break through the
ranks in labs and boardrooms.
Roche’s first
female executive Alice Keller, a Basel native and a PhD graduate
in political economics, worked at Roche in Basel for a year before accepting a
post in Tokyo, where the company formed a subsidiary in 1925. When she arrived
in 1926, she started as a "kind of girl Friday" writes Roche - responsible for tasks like handling correspondence,
revising documents and doing some accounting.
When she returned to Switzerland in 1939, Keller rose to become Roche’s first female senior executive. She retired in 1952. Although women are less of a rarity in labs and in the higher ranks of Swiss pharma companies, there has never been a female CEO or board president at Roche or Novartis.
When she returned to Switzerland in 1939, Keller rose to become Roche’s first female senior executive. She retired in 1952. Although women are less of a rarity in labs and in the higher ranks of Swiss pharma companies, there has never been a female CEO or board president at Roche or Novartis.
Alice Keller. Photo: (Courtesy F. Hoffmann-LaRoche Ltd, Basel)
“You could even see the person’s status on the name shields on the front of the door, which were either gold or silver.”Tobias Ehrenbold, historian
Photo: Interior of Hoffmann-la Roche Building 1928 (courtesy of Hoffmann-La Roche)
TalentAttracting top talent
Pharma companies still retain a certain status in Basel. CEOs at the Swiss pharma firms are among the highest-paid CEOs in Europe.
The profile of a typical pharma worker changed with globalisation and the shift away from producing packets of pills. Instead of factory workers and Basel elite, the corridors are filled with “expats”, sometimes perceived as removed from Swiss society. English is more widely spoken in the companies and in some parts of Basel than the local Swiss German dialect.
Photo: The Roche tower is the tallest building in Switzerland. It is set to be joined by another even taller tower in 2022. (Keystone)
The profile of a typical pharma worker changed with globalisation and the shift away from producing packets of pills. Instead of factory workers and Basel elite, the corridors are filled with “expats”, sometimes perceived as removed from Swiss society. English is more widely spoken in the companies and in some parts of Basel than the local Swiss German dialect.
Photo: The Roche tower is the tallest building in Switzerland. It is set to be joined by another even taller tower in 2022. (Keystone)
“Switzerland has a relatively limited talent pool. It has always understood that it needs to embrace talented scientists from abroad.” Thomas Cueni, Director General of the International Federation of Pharmaceutical Manufacturers & Associations and former head of the Swiss pharma industry association Interpharma
Photo: Gehry building at the Novartis Campus. (Novartis AG)
An industry reckoning
ScandalAn industry reckoning
Devastating accidents and a series of scandals in the pharmaceutical industry shook the Swiss and global public in the 1970s-80s. A chemical accident at a factory owned by a Roche subsidiary in Seveso, Italy in 1976 and a fire at the Sandoz factory at Schweizerhalle in Switzerland in 1986 set in motion safety and environmental protection measures that would become the norm across the entire industry.
There was public outrage at such accidents, with companies criticised for reacting too slowly and shirking their responsibilities.
As other disasters and scandals such as Nestlé’s baby milk boycott, the Bhopal gas tragedy and the Chernobyl nuclear disaster unfolded, the public began questioning the power and practices of big multinational companies.
Photo: On July 10, 1976, a chemical reactor exploded at the Seveso plant near Milan operated by a subsidiary of Roche. (Keystone)
There was public outrage at such accidents, with companies criticised for reacting too slowly and shirking their responsibilities.
As other disasters and scandals such as Nestlé’s baby milk boycott, the Bhopal gas tragedy and the Chernobyl nuclear disaster unfolded, the public began questioning the power and practices of big multinational companies.
Photo: On July 10, 1976, a chemical reactor exploded at the Seveso plant near Milan operated by a subsidiary of Roche. (Keystone)
“This type of dangerous production has been outsourced to India and China – and that’s where today’s ‘Schweizerhalles’ take place.” Martin Forter, Geographer and contamination expert to Swiss public television SRF in 2016
Photo: Members of the fire department in protective suits during the clean-up work after the Schweizerhalle disaster. (Keystone)
Scandal
While a disaster of
that magnitude originating from the pharma industry is unlikely to happen in Switzerland today, water
pollution and safety risks associated with the supply chain abroad remain
issues.
In a move to cut costs, much of the supply chain has moved abroad. Most active pharmaceutical ingredients are produced in China, and finished products in India, where wastewater discharge from pharmaceutical factories is a major problem.
Photo: Emissions from factories producing antibiotics and other drugs have polluted major waterways in Hyderabad, India, 2008. (Keystone)
In a move to cut costs, much of the supply chain has moved abroad. Most active pharmaceutical ingredients are produced in China, and finished products in India, where wastewater discharge from pharmaceutical factories is a major problem.
Photo: Emissions from factories producing antibiotics and other drugs have polluted major waterways in Hyderabad, India, 2008. (Keystone)
scandal Selling lives by the pill
scandal Selling lives by the pill
Photo: A filling station for vitamin effervescent tablets at Hoffmann La Roche headquarters in Basel, 1991. (Keystone)
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Swiss firms were far from immune to the scandals and reputational crises consuming the global pharmaceutical industry in the 1990s. The industry was viewed as greedy, making exorbitant profits and paying high salaries on the backs of patients.
In 1999, Roche pleaded guilty and paid a $500 million criminal fine in the US for leading what was called the “vitamin cartel” – a worldwide conspiracy to raise and fix prices on vitamins to eliminate the competition. Two years later, the European Commission imposed a similar fine on the company.
In 2020, Novartis paid $729 million (CHF688 million) to US authorities in one of the largest industry settlements for allegedly bribing doctors to use its drugs.
In 1999, Roche pleaded guilty and paid a $500 million criminal fine in the US for leading what was called the “vitamin cartel” – a worldwide conspiracy to raise and fix prices on vitamins to eliminate the competition. Two years later, the European Commission imposed a similar fine on the company.
In 2020, Novartis paid $729 million (CHF688 million) to US authorities in one of the largest industry settlements for allegedly bribing doctors to use its drugs.
Photo: A filling station for vitamin effervescent tablets at Hoffmann La Roche headquarters in Basel, 1991. (Keystone)
Scandal
Scandal
Psychiatrist Roland Kuhn. Photo: Staatsarchiv Thurgau
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Some of the methods used to develop and test drugs also raised ethical questions.
One of the most well-known cases is that of psychiatrist Roland Kuhn, who was involved in the development of Imipramine, which was marketed by Geigy as Tofranil to treat depression.
Between 1946 and 1980, 3,000 people served as "guinea pigs" at the Münsterlingen Psychiatric Clinic in northeast Switzerland where Kuhn was the clinic director. Patients rarely volunteered for the experiments and were rarely informed about the drugs they received.
Testing of treatments even through formal clinical trials continues to raise serious ethical questions including the consent of patients, discriminatory practices, and secrecy.
One of the most well-known cases is that of psychiatrist Roland Kuhn, who was involved in the development of Imipramine, which was marketed by Geigy as Tofranil to treat depression.
Between 1946 and 1980, 3,000 people served as "guinea pigs" at the Münsterlingen Psychiatric Clinic in northeast Switzerland where Kuhn was the clinic director. Patients rarely volunteered for the experiments and were rarely informed about the drugs they received.
Testing of treatments even through formal clinical trials continues to raise serious ethical questions including the consent of patients, discriminatory practices, and secrecy.
Psychiatrist Roland Kuhn. Photo: Staatsarchiv Thurgau
ScandalMounting calls for access
Patients in low-income countries often suffered the most from company practices, specifically monopolies and high prices.
This came to a head in the HIV/AIDS crisis, when a group of 39 companies including Roche and Novartis sued the South African government in 1998 for enacting a law that would allow access to cheaper generics of antiretroviral treatment. Roche was a key producer of HIV diagnostics and treatments at the time.
During the three-year legal battle, the industry closed factories and cut investment in the country. Meanwhile, South Africa had the highest rate of HIV infections in the world. In the face of a public outcry, pressure from the World Health Organisation, the EU and the US government, companies dropped the lawsuit.
This paved the way for generic manufacturers to produce patented medicines on a large scale. But Swiss pharma companies have remained staunchly opposed to loosening patent protection to allow the production of more affordable versions of their therapies.
Photo: Demonstrators march through the streets of Pretoria in protest against pharmaceutical firms profiting from sale of AIDS drugs in 2001. (Reuters)
This came to a head in the HIV/AIDS crisis, when a group of 39 companies including Roche and Novartis sued the South African government in 1998 for enacting a law that would allow access to cheaper generics of antiretroviral treatment. Roche was a key producer of HIV diagnostics and treatments at the time.
During the three-year legal battle, the industry closed factories and cut investment in the country. Meanwhile, South Africa had the highest rate of HIV infections in the world. In the face of a public outcry, pressure from the World Health Organisation, the EU and the US government, companies dropped the lawsuit.
This paved the way for generic manufacturers to produce patented medicines on a large scale. But Swiss pharma companies have remained staunchly opposed to loosening patent protection to allow the production of more affordable versions of their therapies.
Photo: Demonstrators march through the streets of Pretoria in protest against pharmaceutical firms profiting from sale of AIDS drugs in 2001. (Reuters)
“People are dying because they can't afford treatments or because they are simply not available. This is because of high prices and patents. Because companies want to keep total control and raise profits, people die.” Patrick Durisch, health policy expert at NGO Public Eye
Search for a cure
ProductsSearch for a cure
Amid the scandals that plagued the industry, scientists at Swiss pharmaceutical firms made major discoveries that would shape the course of diseases from depression and anxiety to malaria, Parkinson’s disease, and cancer. Some of the earliest products like the narcotic Pantopon and Bactrim are still used today.
But where and how companies invest in research has raised questions about whether shareholders or public health needs are driving their priorities.
Photo: In 1955, Roche chemist Leo Sternbach identified the drug benzodiazepine, marketed as Librium. (Courtesy F. Hoffmann-LaRoche Ltd, Basel)
But where and how companies invest in research has raised questions about whether shareholders or public health needs are driving their priorities.
Photo: In 1955, Roche chemist Leo Sternbach identified the drug benzodiazepine, marketed as Librium. (Courtesy F. Hoffmann-LaRoche Ltd, Basel)
productsFinding the next blockbuster
Some of the pharma industry’s early success stories were not actually major discoveries. Sandoz’s first bestseller - calcium - accounted for over one-third of sales in the first half of the 1930s. Ciba filed 158 patent applications in the area of hormones.
Roche also generated huge profits producing synthetic Vitamin C and other vitamins for decades. Opium-based drugs were also bestsellers early on. The company eventually became known as the world’s drugstore because it had a major share in the over-the-counter medication market with drugs like Rennie, a bestselling drug for heartburn relief that was essentially magnesium.
From the 1960s onwards, the drug companies invested heavily in research of more complex treatments for cancer and other non-communicable diseases. They also made acquisitions that catapulted them into market leaders in some areas.
Click on the icons to see some of the Swiss pharma industry's major drugs over the years.
Roche also generated huge profits producing synthetic Vitamin C and other vitamins for decades. Opium-based drugs were also bestsellers early on. The company eventually became known as the world’s drugstore because it had a major share in the over-the-counter medication market with drugs like Rennie, a bestselling drug for heartburn relief that was essentially magnesium.
From the 1960s onwards, the drug companies invested heavily in research of more complex treatments for cancer and other non-communicable diseases. They also made acquisitions that catapulted them into market leaders in some areas.
Click on the icons to see some of the Swiss pharma industry's major drugs over the years.
“The ‘Swiss-like’ style of Geigy is in reality neither Swiss nor a style… It is more properly described as a more functional approach to design.”Fred Troller, Former Geigy designer
productsDesign for life
Geigy’s use of designers and graphic artists made boring pills and syringes into works of art.
Roche also used clever advertising and design strategies to make the abstract accessible to a wider public. But the company also pioneered scientific advertising or propaganda. As early as the 1930s, it had an "all-out effort to win over the doctor” with free samples and written material.
Images: Designers like Max Schmid, Gottfried Honegger, Karl Gerstner, Nelly Rudin and Toshihiro Katayama all helped Geigy to create a corporate identity that was eventually referred to as the “Geigy Style”.
Click on the thumbnails below to view designs.
Roche also used clever advertising and design strategies to make the abstract accessible to a wider public. But the company also pioneered scientific advertising or propaganda. As early as the 1930s, it had an "all-out effort to win over the doctor” with free samples and written material.
Images: Designers like Max Schmid, Gottfried Honegger, Karl Gerstner, Nelly Rudin and Toshihiro Katayama all helped Geigy to create a corporate identity that was eventually referred to as the “Geigy Style”.
Click on the thumbnails below to view designs.
productsInfectious diseases lose interest
With higher prospects for profits in areas like oncology and neurological diseases, many other diseases were neglected because there were either too few patients or prices were too low to make them attractive. Government incentives helped drive investment in some diseases but research into many others, especially those found in poorer countries, waned.
This also affected areas like vaccines and antibiotics. In 2007, Novartis was the fifth-largest vaccine maker in the world. It invested in new vaccine manufacturing to meet demand during the Swine Flu outbreak in 2009, but then the pandemic waned and sales plummeted. In 2014, the company decided to sell off its vaccine division.
Low prices and concerns about overuse have also plagued the antibiotics market but there is an urgent need for new antibiotics as antimicrobial resistance rises. Both Swiss pharma giants abandoned research into new antibiotics starting in the late 1990s. Roche returned to it a few years ago.
This also affected areas like vaccines and antibiotics. In 2007, Novartis was the fifth-largest vaccine maker in the world. It invested in new vaccine manufacturing to meet demand during the Swine Flu outbreak in 2009, but then the pandemic waned and sales plummeted. In 2014, the company decided to sell off its vaccine division.
Low prices and concerns about overuse have also plagued the antibiotics market but there is an urgent need for new antibiotics as antimicrobial resistance rises. Both Swiss pharma giants abandoned research into new antibiotics starting in the late 1990s. Roche returned to it a few years ago.
“The pharmaceutical industry does not necessarily set its priorities according to what the global public health priorities are.” Ellen ‘t Hoen, lawyer and public advocate at Medicines Law and policy
products Engineering the next medical revolution
products Engineering the next medical revolution
Photo: Microbiologist Herbert Boyer (see photo) was one of the co-founders of Genentech, and considered one of the pioneers of the genetic engineering revolution. (Getty images)
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The industry faced a new set of competitors with the rise of biotech start-ups. Roche’s acquisition of California firm
Genentech, one of the first major biotech companies, enabled it to launch Roferon-A in 1986 - the company's first genetically engineered medicine.
But at home in Switzerland, there was deep suspicion of the use of genetic material in therapies, leading to the so-called “biotech referendum” in 1998. Swiss voters rejected the proposed ban on transgenic animals (one integrated with DNA sequence into a cell), ushering in the biotech industry in Switzerland. The vote was seen as a clear sign that the country wanted a strong biotech sector.
But at home in Switzerland, there was deep suspicion of the use of genetic material in therapies, leading to the so-called “biotech referendum” in 1998. Swiss voters rejected the proposed ban on transgenic animals (one integrated with DNA sequence into a cell), ushering in the biotech industry in Switzerland. The vote was seen as a clear sign that the country wanted a strong biotech sector.
Photo: Microbiologist Herbert Boyer (see photo) was one of the co-founders of Genentech, and considered one of the pioneers of the genetic engineering revolution. (Getty images)
productsMulti-million dollar treatments
Over the last decade, Swiss pharmaceutical companies have moved even further away from “volume” products like vaccines into personalised medicine, which is tailored or customised to an individual’s specific biomarkers or risk profile.
The quest for health data and the technology to analyse it, means that Roche and Novartis are no longer just competing with other pharma giants but also big tech companies like Google and Amazon who have entered the healthcare business.
This has led to a mad dash to buy up small, innovative firms with promising technology, some of which received government funding. Since 2000, Novartis and Roche have each acquired more than 40 companies from Artificial Intelligence start-ups to small gene therapy specialist firms.
In 2018, Novartis acquired a small US biotech start-up called AveXis, specialising in gene therapies. In 2019, the companies received FDA approval for Zolgensma, a one-time injection priced at $2.1 million to address the genetic root cause of spinal muscular atrophy.
The quest for health data and the technology to analyse it, means that Roche and Novartis are no longer just competing with other pharma giants but also big tech companies like Google and Amazon who have entered the healthcare business.
This has led to a mad dash to buy up small, innovative firms with promising technology, some of which received government funding. Since 2000, Novartis and Roche have each acquired more than 40 companies from Artificial Intelligence start-ups to small gene therapy specialist firms.
In 2018, Novartis acquired a small US biotech start-up called AveXis, specialising in gene therapies. In 2019, the companies received FDA approval for Zolgensma, a one-time injection priced at $2.1 million to address the genetic root cause of spinal muscular atrophy.
productsReframing pharma's societal role
Both Novartis and Roche talk about scandals as part of “legacy issues” that are in the past, as they seek to reframe the narrative around the essential role the companies play in society. No longer is it enough to produce drugs, but rather to create innovation that “improves lives”.
Suspicion and distrust of the industry has been hard to shake off. As more drugs are launched with huge price tags, governments are scrambling to figure out how to pay for them, prompting more questions about how much companies make and who holds the cards when negotiating the price.
Photo: In June 2019, the Roche tower projected the logo of the nationwide women's strike as a show of solidarity with the movement for gender equality. (Keystone)
Suspicion and distrust of the industry has been hard to shake off. As more drugs are launched with huge price tags, governments are scrambling to figure out how to pay for them, prompting more questions about how much companies make and who holds the cards when negotiating the price.
Photo: In June 2019, the Roche tower projected the logo of the nationwide women's strike as a show of solidarity with the movement for gender equality. (Keystone)
The pandemic moment
futureThe pandemic moment
When the WHO declared the Covid-19 crisis a pandemic in early 2020, Roche jumped to the forefront in developing Covid-19 tests. Both Roche and Novartis also looked at whether existing drugs could be used as treatments against the disease, and later in the pandemic, both partnered with smaller biotechs to develop new treatments.
The story was different when it came to vaccines. Swiss manufacturing partner Lonza signed a deal to produce the active ingredients in Moderna’s mRNA vaccine early on. Later on, Novartis also offered manufacturing capacity for the Pfizer/BioNtech vaccine. But no Swiss company led the development of an effective vaccine.
In early 2021, when people were anxiously waiting for vaccine orders to arrive in Switzerland, the public struggled to understand how such an innovative and dominant industry hadn't developed one of the vaccines.
Photo: Harald Borrmann from Roche Diagnostics, left, shows Swiss Interior Minister Alain Berset a rapid Covid-19 test in a Roche Diagnostics laboratory. (Keystone)
The story was different when it came to vaccines. Swiss manufacturing partner Lonza signed a deal to produce the active ingredients in Moderna’s mRNA vaccine early on. Later on, Novartis also offered manufacturing capacity for the Pfizer/BioNtech vaccine. But no Swiss company led the development of an effective vaccine.
In early 2021, when people were anxiously waiting for vaccine orders to arrive in Switzerland, the public struggled to understand how such an innovative and dominant industry hadn't developed one of the vaccines.
Photo: Harald Borrmann from Roche Diagnostics, left, shows Swiss Interior Minister Alain Berset a rapid Covid-19 test in a Roche Diagnostics laboratory. (Keystone)
“The current health crisis has once again reminded us of the central importance of the research-based pharmaceutical industry for both the health of the population and the national economy of Switzerland.”René Buholzer, head of Interpharma
Photo: Aerial view of Novartis campus in Basel. (Novartis AG)
futureA turning point?
Today the empty vats of dye are remnants of a long-lost era in Basel. Many of the old chemical dye factories along the banks of the Rhine are being torn down or re-used for office, apartment, or recreational spaces.
While Basel remains a hub for the pharmaceutical industry, companies and service providers are spread out across Switzerland and around the world. The companies aren’t just looking for the brightest scientists, they are looking for people who specialise in computer science, Artificial Intelligence and data analysis.
There are signs that the companies will not look the same as they did before the pandemic. In autumn 2021, Novartis announced that it was planning to sell its shares in Roche, worth $21 billion, back to Roche in order to invest in new medicines. It is also conducting a review of its generics divisions Sandoz. All options are on the table including selling off Sandoz – the last name that remains of the pre-Novartis era.
Whether the pandemic will mark a turning point for the industry in Switzerland depends on the answer to many questions. How will the industry meet the needs of society and the demands of shareholders? How will it make its medicines available to everyone who needs them? Will it continue to invest in the innovation we need?
Illustrative photo: Keystone
While Basel remains a hub for the pharmaceutical industry, companies and service providers are spread out across Switzerland and around the world. The companies aren’t just looking for the brightest scientists, they are looking for people who specialise in computer science, Artificial Intelligence and data analysis.
There are signs that the companies will not look the same as they did before the pandemic. In autumn 2021, Novartis announced that it was planning to sell its shares in Roche, worth $21 billion, back to Roche in order to invest in new medicines. It is also conducting a review of its generics divisions Sandoz. All options are on the table including selling off Sandoz – the last name that remains of the pre-Novartis era.
Whether the pandemic will mark a turning point for the industry in Switzerland depends on the answer to many questions. How will the industry meet the needs of society and the demands of shareholders? How will it make its medicines available to everyone who needs them? Will it continue to invest in the innovation we need?
Illustrative photo: Keystone
Sources
Sources
Oral History, Chemistry and Urban Culture of the Association for Industrial and Migration History of the Basel Region.
Georg Kreis, Beat von Wartburg (Hg.) Chemie und Pharma in Basel. November 2016
Tobias Ehrenbold. Samuel Koechlin und die Ciba-Geigy. 2017
T. Ehrenbold, Ch. Hatzky, Ch. Helm, W. Hochreiter, M. Rothmann, J. Salaks. Roche in the World 1896-2021: A Global History. 2021
Historical Archive Roche, F. Hoffmann-La Roche AG
Novartis: How a pharmaceutical world leader was created out of Ciba, Geigy and Sandoz. 2014
Novartis International AG, Firmenarchiv / Company Archive
EY. The largest pharmaceutical companies worldwide. 2020
Interpharma Health Panorama, 2020.
Interpharma. Pharmastandort Schweiz 2030; Region Basel.
Michael Grass, Simon Fry. The Importance of the Pharmaceutical Industry for Switzerland. BAK Economics. 2017.
Lukas Straumann, Daniel Wildmann. “Swiss chemical firms in the ‘Third Reich’”
US Department of Justice. Swiss Executive Agrees to Plead Guilty and Serve U.S. Jail Time. May 20, 1999.
Swiss Public Television SRF and Swiss Radio International archives
Georg Kreis, Beat von Wartburg (Hg.) Chemie und Pharma in Basel. November 2016
Tobias Ehrenbold. Samuel Koechlin und die Ciba-Geigy. 2017
T. Ehrenbold, Ch. Hatzky, Ch. Helm, W. Hochreiter, M. Rothmann, J. Salaks. Roche in the World 1896-2021: A Global History. 2021
Historical Archive Roche, F. Hoffmann-La Roche AG
Novartis: How a pharmaceutical world leader was created out of Ciba, Geigy and Sandoz. 2014
Novartis International AG, Firmenarchiv / Company Archive
EY. The largest pharmaceutical companies worldwide. 2020
Interpharma Health Panorama, 2020.
Interpharma. Pharmastandort Schweiz 2030; Region Basel.
Michael Grass, Simon Fry. The Importance of the Pharmaceutical Industry for Switzerland. BAK Economics. 2017.
Lukas Straumann, Daniel Wildmann. “Swiss chemical firms in the ‘Third Reich’”
US Department of Justice. Swiss Executive Agrees to Plead Guilty and Serve U.S. Jail Time. May 20, 1999.
Swiss Public Television SRF and Swiss Radio International archives
SWI swissinfo.ch related content
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With no prospects for profit, Big Pharma turns back on new infectious diseases
Can Novartis really make its medicines available to everyone?
Can Big Pharma's money solve the antibiotics crisis?
Swiss pharma industry fights lower drug prices in the United States
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Secret discounts leave patients at drugmakers' mercy
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Inside Roche: taking on the tech sector.
Related Podcast
Want more? Have a listen to our podcast
Switzerland is the home of some of the world’s biggest pharmaceutical companies. But when it comes to coronavirus vaccines, the Swiss pharma giants haven’t really been part of the discussion.
In this episode of The Swiss Connection, we find out what Covid-19 tells us about the pharma industry.
In this episode of The Swiss Connection, we find out what Covid-19 tells us about the pharma industry.
Gallery Products
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Digalen - Roche developed Digalen to treat heart conditions. It was sold in a heart-shaped bottle, 1904.
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Sirolin - Until the outbreak of the First World War, Roche generated sales primarily from Sirolin, a cough medicine launched in 1898. Its orange flavor and clever advertising quickly made this product a bestseller.
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Gynergen - One of the first major pharmaceutical products, launched in 1918, was ergot alkaloid, which Sandoz sold under the brand name Gynergen to address postpartum hemorrhage.
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DDT - Praised initially as a miracle weapon in the fight against diseases and pests, DDT, discovered by Geigy chemist Paul Müller, became the epitome of a menacing toxin after its negative impact on the environment became more widely known.
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LSD - Swiss chemist Albert Hofmann discovered Lysergic Acid Diethylamide (LSD-25) while working at Sandoz. In 1943, he conducted a self-experiment, discovering the psychotropic effects of LSD while riding home from his lab by bicycle.
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Valium - Roche chemist Leo Sternbach developed the tranquilizer Valium, which The Rolling Stones called “Mother’s Little Helper”. It was one of the most prescribed drugs in the US for years.
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Herceptin – Developed by Roche subsidiary Genentech, Herceptin ushered in a new era of drugs that target proteins lurking on the surface of tumours. It was the first therapy specifically designed for HER2 positive breast cancer.
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Calcium Sandoz - This was Sandoz’s first best-selling product back in 1929. It was used to treat calcium deficiency and related disorders. It remains a key Sandoz product today.
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Voltaren – Ciba-Geigy launched Voltaren in 1974 to treat rheumatism. It is now used in over 140 countries for various conditions involving pain and inflammation. With more than a billion patients treated and 200,000 clinical trial participants, it is one of the most-studied medicines in the world.
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Ritalin – The psychostimulant Ritalin, developed by Ciba, was first approved for depression in adults in the mid-1950s. The medicine eventually proved effective in improving concentration of children with attention deficit hyperactivity disorder (ADHD). It faced a backlash after studies suggested it was being overprescribed.
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Prostigmin was first produced to relieve the muscular weakness of a chronic autoimmune disorder; myasthenia gravis.
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Rimifon - In 1952, three companies, including Roche, planned to market this antibiotic used to treat tuberculosis only to find out that the drug had already been synthesized in 1912 by two Czech scientists.
Gallery_Geigy promotional designs
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Portfolio for Documenta Geigy /Animales
dormidos (“sleeping animals”).
Gottfried Honegger. 1955.
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Advertising brochure for Irgapyrine enophtalmologie Geigy
1953-1956
Design: Igildo G. Biesele (CH, born 1930)
Commission: J. R. Geigy AG, Basel, CH (1914 - 1970)
1953-1956
Design: Igildo G. Biesele (CH, born 1930)
Commission: J. R. Geigy AG, Basel, CH (1914 - 1970)
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Blotting board (promotional gift for
physicians) for the anti-fungal Sterosan.
Nelly Rudin. 1952.
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Promotional poster for textile dye
'Switch on to Maxilon Brilliants Geigy'
1965-1969
Design: Brian Stones (GB)
Commission: Geigy Limited, Manchester, GB
'Switch on to Maxilon Brilliants Geigy'
1965-1969
Design: Brian Stones (GB)
Commission: Geigy Limited, Manchester, GB
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Advertising for dyestuffs
Irgalane Geigy, before 1954
Design: Karl Gerstner
Commission: J. R. Geigy AG, Basel, CH (1914 - 1970)
Irgalane Geigy, before 1954
Design: Karl Gerstner
Commission: J. R. Geigy AG, Basel, CH (1914 - 1970)
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Poster design Geigy - Protected with Gesarolum 1946
Design: Martin Peikert (CH, 1901 - 1975)
Commission: Geigy A.G., Basel, CH
Design: Martin Peikert (CH, 1901 - 1975)
Commission: Geigy A.G., Basel, CH
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Advertisement for drug
Preludin Geigy
brand of phenmetrazine hydrochloride
1965
Design: Fred Troller (CH, 1930 - 2002)
Commission: Geigy Pharmaceuticals, Ardsley, US (until 1970)
Preludin Geigy
brand of phenmetrazine hydrochloride
1965
Design: Fred Troller (CH, 1930 - 2002)
Commission: Geigy Pharmaceuticals, Ardsley, US (until 1970)
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Swiss pharma reckons with its past, present and future
From the Rhine to the world
The chemistry of three giants
The Basel companies “created works of art that reflected the tastes and culture of an international clientele”.
From dyes to medicine
New arts, new skills
“By joining forces, they catapulted themselves not only into the top ranks in the chemical industry but the new Novartis will be one of the biggest companies ever.”
Keeping it in the Roche family
Rise of a pharma hub
“The chemical and pharmaceutical industry is the only Swiss industry that could really establish itself successfully in the US.”
Becoming a global player
Making it big in America
Competing for the best minds
The work in chemical and dye factories was considered “too dirty and dangerous to be done by women's hands”.
Bringing in women
Video of pharmaceuticals
“You could even see the person’s status on the name shields on the front of the door, which were either gold or silver.”
Attracting top talent
“Switzerland has a relatively limited talent pool. It has always understood that it needs to embrace talented scientists from abroad.”
An industry reckoning
Schweizerhalle video
“This type of dangerous production has been outsourced to India and China – and that’s where today’s ‘Schweizerhalles’ take place.”
Selling lives by the pill
Mounting calls for access
“People are dying because they can't afford treatments or because they are simply not available. This is because of high prices and patents. Because companies want to keep total control and raise profits, people die.”
Search for a cure
Finding the next blockbuster
“The ‘Swiss-like’ style of Geigy is in reality neither Swiss nor a style… It is more properly described as a more functional approach to design.”
video of medicine production
Infectious diseases lose interest
“The pharmaceutical industry does not necessarily set its priorities according to what the global public health priorities are.”
Engineering the next medical revolution
Multi-million dollar treatments
Reframing pharma's societal role
The pandemic moment
“The current health crisis has once again reminded us of the central importance of the research-based pharmaceutical industry for both the health of the population and the national economy of Switzerland.”
Culture change
A turning point?
