Swedish pharmaceutical prices continue to be low due to a weak krona

From an international perspective, Swedish pharmaceutical prices are relatively low. The weak Swedish krona (SEK) is one significant explanation as to why. Prices for pharmaceuticals with generic competition were the lowest, based on a comparison to a sample of 19 other European countries. Sweden has the sixth lowest prices for pharmaceuticals without generic competition.

Prices for pharmaceuticals with generic competition, which in Sweden are included in the 'product-of-the-month' system, have been among the lowest in Europe since 2014. Sweden has the sixth lowest prices for pharmaceuticals without generic competition, and these prices have fallen consistently since 2014 compared to prices in other countries.

A continued weak Swedish exchange rate

The weak Swedish krona (SEK) is one significant explanation as to why Swedish pharmaceutical prices continue to fall compared to other countries, especially prices for pharmaceuticals without generic competition. If the effects of fluctuating exchange rates are discounted, Swedish prices are largely unchanged over time compared to other countries.

As the pharmacy purchase price for pharmaceuticals included in the high-cost protection scheme is set in SEK, a weaker krona leads to lower prices in Sweden compared to those in other countries.

A wide spread of relative prices between different pharmaceutical groups

Swedish relative prices vary widely between different pharmaceutical groups. In 2024, the Swedish price level for pharmaceutical groups without generic competition, ranged from a high of 16 per cent above to a low of 60 per cent below the European average. Because of the weak Swedish krona, TLV can also see a general downward price trend for the majority of pharmaceutical groups without generic competition. Swedish prices for pharmaceuticals with generic competition are below the European average in almost all groups, irrespective of whether prices are calculated based on a fixed or variable exchange rate. Groups priced above the European average are recent additions to the 'product-of-the-month' system, hence market price competition is yet to arise.

The prices of top-selling substances are lower than the European average

List prices in Sweden for many top-selling substances, that is those with annual sales of at least SEK 100 million in Sweden, are below the European average. Relative prices for top-sellers in Sweden are lowest for substances with biosimilar competition. The Swedish list price for all pharmaceuticals designated as orphan drugs by the European Medicines Agency (EMA) are below the European average.

Decreasing prices throughout a pharmaceutical life cycle

The analysis also shows that Swedish prices during the life cycle of a pharmaceutical (0–20 years after marketing authorisation) shifted downwards to below the European average throughout the life cycle during the period 2020–2024. This is mainly because the value of the Swedish krona fell to a greater extent during this period than between 2014 and 2019. TLV does not adjust pharmaceutical prices on an ongoing basis in line with exchange rate fluctuations, which differs from some of the other countries' pricing and reimbursement systems.

About the report

The assignment of the Dental and Pharmaceutical Benefits Agency (TLV) includes monitoring and analysing the development of pharmaceutical prices internationally. The purpose of this report is to compare the development of pharmaceutical prices in Sweden to prices in other European countries.

The report has been published annually since 2014. Analyses are based on price and volume data for the first quarter of each year during the period 2014-2024 in Sweden and 19 other European countries. The comparison includes pharmaceuticals with and without generic competition.

The 19 countries in comparison to Sweden are: Belgium, Denmark, Finland, France, Greece, Ireland, Italy, Netherlands, Norway, Poland, Portugal, Switzerland, Slovakia, Spain, United Kingdom, Czechia, Germany, Hungary and Austria.