Swiss pharmaceutical group Galenica has announced it will cease production at its Bichsel subsidiary by the end of the year, citing a lack of competitiveness. The move places up to 170 jobs at risk by the end of 2026.
"Various measures aimed at improving results have not had sufficient effect in recent years."
"No scenario can guarantee the long-term future of production."
A seismic shift is hitting the Bernese Oberland as pharmaceutical titan Galenica announces a drastic move to halt production at its Bichsel subsidiary. The decision places a staggering 170 jobs directly in the firing line, sending shockwaves through the local employment sector. By the end of 2026, the production lines in Interlaken will fall silent, marking the end of an era for a facility that has been a staple of the region since 1948.
Galenica is not mincing words regarding the timeline. A consultation procedure is slated to begin immediately in mid-March, a critical window that will determine the fate of the workforce. While the company claims it is examining options to maintain employment within the wider Group, the reality is stark: if redundancies are deemed necessary, a redundancy program will be triggered. This includes financial support and professional reorientation, but for the 170 employees facing an uncertain future, these assurances may offer little comfort against the backdrop of a major industrial closure.
The price of shutting down operations is steep, with Galenica bracing for a massive financial hit. The restructuring costs are estimated to reach a significant CHF 35-40 million, a heavy burden that will largely impact the company's books in the first half of this year alone. This figure includes a substantial CHF 17-19 million in value adjustments on inventories and tangible fixed assetsâessentially writing off millions in machinery and stock that no longer hold value for the group.
However, this painful upfront cost is a calculated maneuver designed to bleed-proof the company's future earnings. Galenica projects that these drastic measures will eventually turn the tide, boosting operating profit (Ebit) by CHF 3 million annually starting in 2027. It is a classic corporate gamble: absorbing a massive short-term blow to secure long-term profitability. While the balance sheet may look grim in 2026, the company is betting that shedding this "uncompetitive" weight will streamline its financial health in the years to come.
Why close? The answer is a brutal assessment of reality: the Bichsel site is simply too far gone to save. Galenica has explicitly stated that "various measures aimed at improving results have not had sufficient effect in recent years." The company didn't just wake up and decide to close the doors; they explored major investments and even the construction of a new building. Yet, the verdict was damning.
In a candid admission, the group declared that "no scenario can guarantee the long-term future of production." Even more telling is the revelation that the facility cannot be sold. Given the current state of the site, a sale is "not possible," leaving Galenica with no exit strategy other than a total shutdown. This inability to offload the asset underscores the severity of the infrastructure or competitiveness issues plaguing the subsidiary. It is a stark reminder that in the high-stakes world of Swiss pharmaceuticals, legacy and history cannot protect a facility from the cold logic of market viability.
Amidst the closure, Galenica is aggressively pivoting its strategy. While the production lines stop, the brand is not disappearing from Interlaken entirely. The Grosse Apotheke Dr G. Bichsel pharmacy will survive, continuing operations under the well-known Amavita banner. This move signals a clear shift away from heavy manufacturing and toward direct consumer services and retail, sectors where Galenica evidently sees a brighter, more profitable future.
Furthermore, the subsidiary will refocus its remaining energy on homecare services. This aligns with the group's broader trajectory; in October 2025, Galenica already combined the expertise of its Homecare Bichsel and Lifestage Solutions subsidiaries. Backed by robust sales of CHF 4.14 billion last yearâdriven by surging demand for GLP-1-based metabolic therapiesâGalenica is shedding its dead weight to double down on what works. The message is clear: the future of Swiss pharma is not just in making the drugs, but in delivering the care.