How is Swiss pharmaceutical distribution structured?
Full-line wholesaler, pre-wholesaler, 3PL
A full-line wholesaler carries the whole product range on its own account and supplies pharmacies, drugstores, practices and hospitals. A pre-wholesaler or 3PL provider stores and distributes on behalf of the authorisation holder without taking title to the goods. Both need a wholesale licence under art. 18 of the Therapeutic Products Act (HMG).
Distribution runs in two stages. At the first, the goods sit with a pre-wholesaler or logistics provider working for the authorisation holder; at the second, full-line wholesalers distribute to the dispensing points. Three full-line wholesalers dominate German-speaking Switzerland and the Romandie, with a regional supplier added in Ticino.
The Galenica group shapes the picture. Galexis in Niederbipp, Voigt in Romanshorn, Alloga in Burgdorf and the pharmacy chains belong to the same group, which explains the breadth of range and the delivery frequency. Amedis-UE in Unterentfelden also serves the whole country, and Unione Farmaceutica Distribuzione covers the Italian-speaking market.
Alongside them sits mail order. Zur Rose in Frauenfeld, today part of Redcare Pharmacy, delivers straight to patients. Pharmapool in the canton of Bern mainly serves doctors' practices. These channels are small in volume but matter for family practices, generics and long-term medication.
| Company | Role | Base |
|---|---|---|
| Galexis | Full-line wholesaler, broad range, Galenica group | Niederbipp (BE) |
| Voigt | Full-line wholesaler, Galenica group | Romanshorn (TG) |
| Amedis-UE | Full-line wholesaler, Galenica group | Unterentfelden (AG) |
| Unione Farmaceutica Distribuzione | Full-line wholesaler for Ticino | Barbengo (TI) |
| Alloga | Pre-wholesale and 3PL for authorisation holders | Burgdorf (BE) |
| Pharmapool | Wholesaler focused on doctors' practices | Canton of Bern |
| Zur Rose, Redcare Pharmacy | Mail-order pharmacy, direct delivery to patients | Frauenfeld (TG) |
Which GDP duties apply in the warehouse and in transport?
The basis is Good Distribution Practice, in substance the PIC/S GDP guide, implemented through the wholesale licence under art. 18 HMG and the Medicinal Products Licensing Ordinance. What is required is a quality system, a responsible person, qualified rooms and transports, and demonstrable temperature control across the whole chain.
Temperature mapping is the technical core. Every storage zone is measured through summer and winter, sensors go to the worst points, deviations are documented and assessed. Cold-chain goods run at 2 to 8 degrees, room-temperature goods normally at 15 to 25 degrees, both with alarms and calibrated instruments.
On top come the duties against falsified medicines. Suppliers and customers must be qualified, deliveries may only go from and to licensed companies, suspect consignments must be quarantined and reported to Swissmedic. Self-inspection and a working deviation management are the first subject at every inspection.
- Quality system with self-inspection, deviation and change management
- Responsible person with authority to instruct and sufficient presence
- Temperature mapping of the storage zones, calibrated sensors, round-the-clock alarms
- Cold chain of 2 to 8 degrees with qualified containers and transport lanes
- Qualification of suppliers and customers, delivery only to licensed recipients
- Vigilance against falsification, quarantine of suspect goods and notification of Swissmedic
How is the price built up and who earns how much?
For reimbursed medicines the Federal Office of Public Health (FOPH) sets the ex-factory price and the public price when it admits a product to the specialities list. The difference is the distribution share, which pays for the whole logistics and dispensing chain. The KVV and the KLV are the governing ordinances.
The distribution share consists of a price-related surcharge as a percentage of the ex-factory price and a pack-related surcharge in francs. The percentage was reduced most recently and lies in the low single digits for the bulk of packs, while the franc amount is graded by ex-factory price bands. The ordinance is binding, not a market estimate.
How that share splits between wholesaler and pharmacy is set by contract, not by law. The wholesaler typically keeps a small percentage of the ex-factory price and the rest stays with the dispensing point. For self-pay products without a listing, pricing is free, but reimbursement by basic insurance is absent.
- Ex-factory price plus distribution share gives the public price, with value added tax on top
- Price-related surcharge as a percentage of the ex-factory price, reduced and capped
- Pack-related surcharge in francs, graded by ex-factory price bands
- The split between wholesaler and pharmacy is contractual, not statutory
- Without a listing, pricing is free but basic insurance does not reimburse
Own warehouse, 3PL or full-line wholesaler: what should an entrant choose?
The choice hangs on volume and range. An own warehouse only pays off at high volume or with very specific requirements, a 3PL provider brings the licence, GDP compliance and scale immediately, and the full-line wholesaler adds access to every dispensing point.
In practice almost all new entrants combine: the goods sit with a pre-wholesaler such as Alloga and fine distribution runs through one or several full-line wholesalers. Supplying pharmacies directly only pays with few customers, high margins, or in hospital business with tenders and direct contracts.
The language regions are a decision of their own. Ticino and parts of the Romandie are best reached through regional partners, and pack texts, professional information and customer service have to be trilingual. Serving German-speaking Switzerland only means giving up roughly a quarter of the market.
| Model | Cost | Speed | Control | Coverage |
|---|---|---|---|---|
| Own warehouse with own licence | High fixed cost, licence and responsible person needed | Six to twelve months to build | Full control over processes and data | Own customers only, no fine distribution |
| 3PL or pre-wholesale | Variable cost per pallet and line | Live in two to four months | Control through contracts and audits | Nationwide, fine distribution via wholesalers |
| Full-line wholesaler | Margin out of the distribution share, low fixed cost | Able to supply as soon as listed | Little control, dependence on the partner | Practically all pharmacies, drugstores and hospitals |
Mail order, returns and batch recalls
Mail order is permitted in Switzerland but tightly regulated. Under art. 27 HMG the mail-order pharmacy needs a cantonal licence, and every shipment requires a medical prescription, even for medicines that would be available over the counter in a pharmacy. Shipping from abroad to end customers is not permitted.
Returns are the trickiest routine in the warehouse. Goods that have left the controlled environment may only go back into saleable stock if storage and transport are evidenced throughout. In every other case they are quarantined and destroyed, with a record and an assessment by the responsible person.
For recalls every licensed company needs a system that works at any time. Batches must be traceable to the customer, contact lists current, reporting paths to Swissmedic defined. Quality defects and recalls must be reported to Swissmedic, and the effectiveness of the recall has to be evidenced afterwards.
- Clarify the roles: authorisation holder, warehouse keeper, wholesaler, dispensing point
- Secure the wholesale licence under art. 18 HMG, in your own company or at the partner
- Conclude a quality assurance agreement with the 3PL and the wholesalers, plan audits
- Complete temperature mapping, cold chain and transport qualification before the first shipment
- Define the return and destruction process, document the responsible person's decision authority
- Test the batch recall at least yearly, keep contact lists and reporting paths current
Frequently asked questions
Do I need my own licence for a warehouse in Switzerland?
Yes, as soon as you store or ship medicinal products yourself. Storage and shipping count as wholesale and need a licence under art. 18 HMG. Outsourcing logistics to a licensed 3PL provider means using their licence, but you need a quality assurance agreement.
Who are the largest wholesalers in Switzerland?
Full-line supply runs through Galexis in Niederbipp, Voigt in Romanshorn and Amedis-UE in Unterentfelden, all three in the Galenica group, plus Unione Farmaceutica Distribuzione for Ticino. At pre-wholesale level Alloga in Burgdorf is the best known provider.
How much of the public price stays with the wholesaler?
The distribution share pays the wholesaler and the dispensing point jointly; its size follows from a price-related percentage surcharge and a franc surcharge per pack. The split is a matter of contract. The wholesaler usually keeps only a small percentage of the ex-factory price.
May I ship medicines directly to patients?
Only through a pharmacy holding a cantonal mail-order licence and only against a medical prescription, including for over-the-counter medicines. The basis is art. 27 HMG. Shipping from abroad directly to Swiss end customers is not permitted.
How fast must a batch recall work?
The system must be operable at any time and trace the affected batch down to the customer supplied. In practice customers are informed within hours in an urgent recall. The recall must be reported to Swissmedic and its effectiveness evidenced afterwards.