Swedish prices on pharmaceuticals decrease with a weakening Swedish krona

Swedish pharmaceutical prices are relatively low when considered in an international perspective. In 2023, prices in Sweden were the lowest for pharmaceuticals with generic competition, and sixth lowest among pharmaceuticals without generic competition, compared to 19 other European countries.

During the period 2014-2023, Swedish prices for pharmaceuticals with generic competition, which in Sweden are included in the product-of-the-month system, have been among the lowest, compared to the other countries in the report. The prices of pharmaceuticals without generic competition have become lower in relation to prices in other countries throughout the period.

Weak Swedish krona behind the result

In 2023, the Swedish krona fell in relation to many of the currencies present among the comparison countries, including the euro. A weaker exchange rate leads to lower prices in Sweden compared to other countries for pharmaceuticals for which the prices have already been determined.

– The weakening of the Swedish krona is the main explanation behind declining prices on pharmaceuticals in Sweden compared to prices in other countries. Removing the exchange rate effect, Swedish prices remains stable over time when compared to other countries, says Jonas Nilsson, acting Head of unit at TLV.

At the same time, the costs of pharmaceuticals sold within the Swedish pharmaceutical benefits scheme has increased. This is mainly due to increased sales of pharmaceuticals already in the benefits scheme, but also to new pharmaceuticals entering the market. Over the last 10 years, the average annual cost increase was almost five percent.

Sweden has the lowest prices for older pharmaceuticals

It is primarily Swedish prices on older pharmaceuticals, those which have been on the market for more than 15 years, that are relatively low compared to prices in other countries. This is concluded from the analyses on how Swedish prices compares to the average among the included countries at different ages during a pharmaceutical’s life cycle. Prices for younger pharmaceuticals, those that have been on the market for between 10 and 15 years, are relatively high in Sweden.

– After 15 years on the market, most pharmaceutical patents expire, which in many cases lead to competition and lower prices. In Sweden, pressure induced by the product-of-the-month system, together with price ceilings, lead to a decline in Swedish prices, says Jonas Nilsson.

The report also discusses the development of prices for TNF-alpha inhibitors and pharmaceuticals used in the treatment of ADHD. The reason for this is that Swedish prices for pharmaceuticals in these groups have fallen significantly in relation to prices in other countries in recent years. In both cases, increased competition within each group on the Swedish market explains the lower prices in Sweden.

About the report

The international price comparison report is part of TLV’s mandate to monitor the development on the Swedish pharmaceutical market in an international perspective. This report is the tenth of its kind. The analysis is based on national list prices (pharmacy purchase price). TLV presents results from analyses, which is based on price and volume data measured during the first quarter of each year during the period 2014 to 2023, that compare Swedish prices on pharmaceuticals with 19 other European countries. The report includes analyses for all selected pharmaceuticals, as well as analyses where the selection is separated into those with generic competition and those without.

The countries that Sweden is compared to are: Belgium, Denmark, Finland, France, Greece, Ireland, Italy, the Netherlands, Norway, Poland, Portugal, Switzerland, Slovakia, Spain, United Kingdom, Czechia, Germany, Hungary and Austria.