Christof Klöpper
By Christof Klöpper, Basel Area Business & Innovation
Funding cuts. Policy whiplash. And an increasing skepticism (if not disdain) for science. They’re all reasons Switzerland’s Basel region is starting to receive more than a passing glance by U.S. life sciences companies looking to expand their business.
Additional proof of this shaken confidence can be found in a letter hundreds of U.S. biotech leaders recently cosigned on behalf of No Patient Left Behind and sent to FDA Director Dr. Marty Makary. The letter cited the importance of having a predictable regulatory agency and noted a survey in which 82 percent of biopharma respondents said they were concerned about the FDA’s ability to function. It also included concerns that added volatility in an already high-risk industry will discourage overall investment in biotech innovation or will drive it to other countries.
Should these fears come to fruition, the Basel area has a welcome basket ready. The region is already home to a life sciences supercluster of more than 800 pharma and biotech companies, including Roche, Novartis, and Lonza, and is emerging as a global hub for U.S. researchers and executives seeking a more predictable environment for innovation and capital investment.
The reasons the area is ideal for U.S. life sciences companies to expand their European footprint as vast as the Swiss Alps. But the following are some of the top selling points.
Stable and forward-thinking. Being pro-science isn’t just limited to the government, it’s part of the Swiss culture. Here, we are committed to funding innovation, we give our universities the freedom to follow the science and operate independently, and there’s a sense of national pride in the outcomes.
Incentives for innovation. The Basel area offers excellent tax rates and incentives in the form of government grants to promote innovation in the life sciences. Funding is available to offset expenses for clinical studies, research and development (R&D), depreciation of R&D assets, and other stimulus. The region also offers an R&D super-deduction and a “patent box,” which amounts to a reduced tax rate on income derived from qualifying intellectual property. This is in addition to an already very competitive corporate tax income rate of around 13 percent.
Fast approval-to-reimbursement time. Once a drug is approved in Switzerland, it’s typically eligible for reimbursement in less than six months — one of the fastest in the world. For comparison, in the United States it takes 9.2 months on average for an approved drug to be reimbursed. Further, Switzerland is home to the second-highest reimbursement rate.
Location, location, location. Europe can be complex — there are many political systems and languages that interconnect — and Switzerland is smack in the middle of it all. Basel’s prime, centralized location offers direct access to the biggest European markets and close proximity to several top-tier universities including the University of Basel and the life sciences campus of ETH Zurich — two of the top research institutions in Europe.
Welcoming to expats. In the United States, the new H-1B visa applicants will cost companies $100,000 per researcher, making it harder for American companies to attract top scientists. In Switzerland, the work permit is free, companies cover minimal administrative costs. Additionally, the processing time is generally only a matter of weeks.
Outstanding quality of life. The Basel region is home to excellent mountain biking, hiking, climbing and all things outdoors. The Rhine River beckons kayakers and water lovers, while the city’s medieval streets, Gothic cathedrals, and hundreds of fountains sit in perfect contrast to its modern-day architecture, including the Roche Towers, a dominating landmark and the tallest building in the country. The arts and culture scene is among the best in Europe too. And who doesn’t love a location that allows you to cap a day of shopping in France with a handcrafted Pilsner in Germany?
Christof Klöpper is CEO of Basel Area Business & Innovation and has served in the role since 206. Prior to this he was managing director at i-net innovation networks; head of development for industry and technology at the office of Industry and Employment in the Basel-Stadt Economics Department; and managing director and a member of the board of directors of Technologiepark Basel AG. Before this, he was a scientific assistant at the University of Basel.