The Swiss Chemical and
Pharmaceutical Industry
Zurich, April 2012
1
Chemicals in Consumer Products
100.0
90.0
80.0
70.0
60.0
50.0
40.0
30.0
20.0
10.0
-
s
es cals ent tics res ints ets ngs pes ing oes ries tery ing ses ats ood els
y
d uti g e Ty pr rp cki ta ain h tte ls oth es Bo F Fu
S a ho l t r
& e g a sm
o Ca to nd urt
t
C at
c
s
o
B p
o
r
n
S
a
a
i
C
h
C
U
M
s
P
ue rm an
'
q
D
a
e
c h l
C
La P C
Source: ACC, CEFIC
2
World-wide sales
"top ten" Swiss chemical and pharmaceutical companies
Total 2011: 149.2 bn CHF
Europe
52.2 bn CHF
Switzerland
2.8 bn CHF
Source: scienceindustries 2012
3
Asia, Africa,
Australia
34.4 bn CHF
America
59.8 bn CHF
Leading Chemical Export Nations 2010
billion EUR
160'000
140'000
120'000
100'000
80'000
60'000
40'000
20'000
Finland
Islamic Rep. of Iran
Argentina
Australia
Czech Republic
Hungary
Indonesia
Poland
Brazil
Israel
Mexico
Malaysia
Denmark
Austria
Saudi Arabia
Thailand
Sweden
Taipei, Chinese
Russian Federation
India
Canada
Spain
Singapore
Italy
Republic of Korea
Ireland
Japan
Switzerland
United Kingdom
the Netherlands
China
France
Belgium
4
United States
Source: VCI 2012
Germany
0
Focus on life science and chemical specialties
World-wide sales of the "top ten" Swiss companies
Total 2011: 149.2 bn CHF
Crop protection
11.7 bn CHF
Diagnostics
11.5 bn CHF
Pharmaceutical
s
71.0 bn CHF
Source: scienceindustries 2012
5
Fine and
specialty
chemicals
46.4 bn CHF
Vitamins,
flavours and
fragrances
8.5 bn CHF
Increasing trend towards pharmaceuticals
Share of the specialties in the total exported volume
100%
Other Specialties
Flavors / Fragrances
90%
Crop Protection
Colours
80%
Organic Products
Pharmaceuticals
70%
60%
50%
40%
30%
20%
10%
0%
1980
Source: scienceindustries 2012
6
1990
2000
2002
2004
2006
2008
2010
2011
Export Growth of Sectors 1980 - 2011
1980 = 100 %
Pharmaceuticals
(1'597.9 % )
Flavors / Fragrances
(397.6 % )
Crop Protection
(363.5 % )
Other Specialties
(360.9 % )
Organic Products
(188.7 % )
Colours
(127.3 % )
Source: scienceindustries 2012
7
Pharmaceuticals / Vitamines and Crop
Protection Products:
until 1988 excluding intermediates
Organic Products:
until 1988 including intermediates
Increased focus of the companies
Industry restructuring illustrated by the Basle based chemical companies (1970 – 2010)
8
Worldwide Presence
World map of direct investments
Source: scienceindustries 2012
9
Employees abroad
Employees of the "top ten" companies by region
Total 2011: 354’500 employees
Europe
120'200
Switzerland
46'300
Source: scienceindustries 2012
10
Americas
104'400
Asia, Africa,
Australia
83'600
Growing importance of direct investments abroad
Development of headcount of the "top ten" companies by region
140'000
1997
2011
120'000
100'000
80'000
60'000
40'000
20'000
Switzerland
Source: scienceindustries 2012
11
Europe
America
Asia, Africa
High research intensity
International comparison of research intensity (R&D / turnover) in 2004
8.00
7.00
6.00
5.00
4.00
3.00
2.00
1.00
Switzerland
Source: CEFIC 2006
12
Japan
USA
EU 15
Internationally integrated research
R & D expenditures
Total 2011: 20.7 bn CHF
16.00
abroad
Switzerland
14.00
12.00
10.00
8.00
6.00
4.00
2.00
2003 2004 2005 2006 2007 2008 2009 2010 2011
Source: scienceindustries 2012
13
Rapidly rising cost of R & D
R & D cost for an new pharmaceutical molecule (NCBE)
in Mio. US $
1'400
1'200
1'000
800
600
400
200
0
1975
Source: EFPIA 2012
14
1987
2001
2006
Patent protection
The market introduction of a pharmaceutical takes time and money
start patent protection
research
development
screening
clinical
SPoC*
2 - 4 years
chances of success
market
preclinical
selection
end patent protection
20 years
phase I II III
IV
authorization
introduction
4 - 7 years
12%
%
67%
%
100%
%
1.5
1
substances
10’000 - >100’000
6-8
costs
ca. 1/3
* SPoC = Selection Proof of Concept
Source: Novartis, scienceindustries 2007
15
ca. 2/3
> 1 bn USD
R&D expenditures in Switzerland
Private research expenditures
Total 2008: 12.0 bn CHF (intramuros)
Others
1'868 Mio. CHF
Engineering,
metals
1'610 Mio. CHF
Research labs
1'129 Mio. CHF
Information &
communication
1'552 Mio. CHF
Food
548 Mio. CHF
Chemicals &
pharmaceuticals
5'271 Mio. CHF
Source: economiesuisse, SFSO 2010
16
Employees in R&D in Switzerland
Research staff in the industry
Total 2008: 39’830 employees
Others
7'084
Machinery,
metals
8'230
Food
1'612
Chemicals &
pharmaceuticals
11'633
Source: economiesuisse, SFSO 2010
17
Information &
communication
7'534
Research labs
3'737
Exports are financing R&D in Switzerland
Financing deficit of the "top ten" Swiss companies (2011)
in billion CHF
8.0
7.0
6.0
5.0
4.0
3.0
2.0
1.0
Sales
Source: scienceindustries 2012
18
R&D expenses
Strong dependency on exports
Total exports and domestic sales 2011: 78.5 bn CHF
Asia
11.8 bn CHF
Other regions
2.8 bn CHF
Latin America
3.1 bn CHF
Domestic Sales
3.9 bn CHF
Rest of Europe
3.3 bn CHF
EU
42.7 bn CHF
Source: SCA, scienceindustries 2012
19
North America
10.9 bn CHF
Important export industry
Total Swiss exports
Total 2011: 208.1 bn CHF
Metals &
machinery
68.6 bn CHF
Textiles &
clothing
3.2 bn CHF
Source: SCA 2012
20
Food,
beverages,
tobacco
7.4 bn CHF
Others
34.9 bn CHF
Chemicals &
pharmaceutic
als
74.6 bn CHF
Watches
19.3 bn CHF
Export Growth in % 1998 - 2010
% numbers in brackets: share of chemicals & pharmaceuticals exports 2009
250
500
300
250
200
150
100
50
0
- 50
- 100
400
300
200
100
0
200
150
100
50
0
- 50
(61.6 %)
- 100
(14.7 %)
350
- 100
(15.8 %)
300
250
200
150
100
50
0
- 50
- 100
(4.2 %)
300
150
200
100
100
50
0
0
- 50
- 100
- 100
- 200
- 150
(2.1 %)
(1.7 %)
Dyes & Pigments
Crop Protection
Pharmaceuticals, Vitamines, Diagnostica
Chemicals & Pharmaceuticals
Total Swiss Exports
Source: scienceindustries 2012
21
Growing importance of exports
Share of chemicals and pharmaceuticals in total Swiss exports
%
40.0
35.0
30.0
25.0
20.0
15.0
10.0
5.0
1980
Source: scienceindustries 2012
22
1990
2000
2002
2004
2006
2008
2010
2011
Significant trade surplus
International comparison of the export surplus 2010
in billion EUR
Switzerland
Switzerland
B elgium
Netherlands
Netherlands
Germany
Germany
France
United Kingdo m
United Kingdo m
Japan
Japan
United States o f A merica
Spain
United States o f A merica
Italy
Italy
-1'000
B elgium
France
Spain
0
1'000
Source: VCI 2012, UN Population Statistic 2012
23
per capita in EUR
2'000
3'000
4'000
-15.0 -10.0
-5.0
0.0
5.0
10.0
15.0
20.0
25.0
30.0
35.0 40.0
45.0
Contribution to Gross Domestic Product
selected industries 1997 - 2009
%
6.00
Food
Watches
Chemicals & pharmaceuticals
5.00
Metals & machinery
4.00
3.00
2.00
1.00
1998
Source: SFSO 2012
24
2000
2002
2004
2006
2008
2009p
Dynamic industry
Development of production index (1995 - 2011)
% (1995 = 100)
200.0
150.0
100.0
50.0
-
Total
Textiles
Food
Energy, water
Electrical
engineering
Paper and
printing
Engineering
25
Metals
Source: SFSO 2012
Chemicals &
pharmaceuticals
-50.0
Major employer in industry
Employees by industry sector in %
Total of industry: 629’500 (2011)
Electrical
equipment
5.8 %
Engineering
13.0 %
Others
19.0 %
Data Processing
Equipment &
Watches
16.4 %
Food & Tabaco
9.5 %
Metals
15.2 %
Pharmaceuticals
5.8 %
Source: SFSO 2012
26
Mineral Oil &
Chemicals
4.5 %
Wood, Paper &
Printing
10.9 %
Size of the Swiss companies
Distribution of employment by company size (2008)
Entreprises %
80.0
Employees %
70.0
60.0
50.0
40.0
30.0
20.0
10.0
250 and more
employees
Source: SFSO 2012
27
50 to 249
employees
10 to 49 employees
0 to 9 employees
Size of the Swiss companies
Distribution of employment by company size (2008)
0 to 9 employees
(452 enterprises)
1'774
10 to 49
employees (212
enterprises)
5'810
50 to 249
employees (120
enterprises)
14'145
more than 249
employees (50
enterprises)
49'045
Source: SFSO 2012
28
Responsible Care
Number of workplace accidents per mio. working hours (LTIR)
14.0
12.0
10.0
8.0
6.0
4.0
2.0
1993
Source: scienceindustries 2012
29
1996
2000
2001
2002
2003
2004
2005
2006
2007
Responsible Care
Energy consumption in terajoules per production unit
120.0
100.0
80.0
60.0
40.0
20.0
0.0
2002
Source: scienceindustries 2012
30
2003
2004
2005
2006
2007
Responsible Care
CO2 emissions in tons per production unit
9'000
8'000
7'000
6'000
5'000
4'000
3'000
2'000
1'000
0
1993 1996 2000 2002 2004 2006 2007 2008 2009 2010
Source: scienceindustries 2012
31
Responsible Care
VOC emissions
4'000
3'500
3'000
2'500
2'000
1'500
1'000
500
0
1993 1996 2000 2002 2004 2006 2007 2008 2009 2010
Source: scienceindustries 2012
32
Responsible Care
Water consumption
350
Cooling water
Process water
300
250
200
150
100
50
0
1996
2000
Source: scienceindustries 2012
33
2001
2002
2003
2004
2005
2006
2007