Galenica to Cut 170 Jobs at Bichsel Subsidiary in Strategic Shift

Swiss pharma giant Galenica will shutter Bichsel’s production in Interlaken by 2026, affecting 170 staff as the group pivots toward high-growth homecare services.

By: AXL Media

Published: Feb 25, 2026, 7:30 AM EST

Source: SWI swissinfo.ch

Strategic Realignment and Production Closure

The Bern-based healthcare provider Galenica confirmed on Tuesday, February 24, 2026, that it would permanently halt pharmaceutical manufacturing at its Bichsel facility. The move comes after the company determined that the production unit was no longer economically competitive despite multiple attempts to boost profitability. The shutdown process is scheduled to be completed by the end of 2026, affecting nearly half of the subsidiary's workforce.

This development follows a period of rigorous internal review. Galenica management noted that while various measures were implemented in recent years to improve the site's results, they failed to achieve the necessary impact to sustain long-term operations. The company cited the specialized nature of the business and the current state of the manufacturing plant as primary hurdles that made a potential sale or further investment unviable.

Analysis of the Pharmaceutical Landscape

The decision to abandon manufacturing in Interlaken reflects a broader trend within the Swiss pharmaceutical sector, where rising operational costs and intense global competition are squeezing smaller, specialized production sites. By shuttering the manufacturing arm, Galenica is essentially choosing to cut its losses on a "legacy" asset to protect its wider margins. This pivot suggests that even within high-income markets like Switzerland, the mid-tier pharmaceutical manufacturing segment is struggling to match the efficiency of larger, automated facilities or lower-cost international competitors.

TRANSFORMATIVE ANALYSIS: Galenica’s retreat from production underscores a strategic shift toward service-oriented healthcare models. In an era where drug prices are under heavy regulatory pressure, the company is reallocating capital toward homecare—a segment with higher barriers to entry and direct-to-patient loyalty. This move effectively transforms Bichsel from a traditional manufacturer into a specialized service provider, mitigating the risks associated with hardware-heavy industrial production.