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PJ Online homeThe Pharmaceutical Journal
Vol 277 No 7421 p417
7 October 2006

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Stalemate over scheme to stifle parallel importing

Both parallel importers and GlaxoSmithKline have claimed victory in a European Court case over the legality of GSK's dual pricing scheme in Spain (PDF 100K).

GSK says that it has won because the European Court of First Instance has annulled a European Commission decision banning the company from charging Spanish wholesalers one price, if they distribute medicines internally in Spain, and a higher price if the medicines are for re-export to another European country (PJ, 2 June 2001, p737).

A counter-claim of victory by the European Association of Euro-Pharmaceutical Companies is based on a second ruling in the same case that upholds the commission’s decision that dual pricing is not permitted under European competition law.

At the end of last month, the court said that the commission was right to conclude that dual-pricing was a restriction on competition. But it said that the commission should reconsider its prohibition because it did not look closely enough at the economic arguments for and against the scheme and their effect on pharmaceutical innovation.

Marie Manley, intellectual property partner at law firm, Bristows, said: “The EU commission has been slapped again by the Court of First Instance. However, pharmaceutical companies are still in a foggy uncertainty in relation to the legality of a dual pricing scheme. We will need a second round of arguments and at least a second visit to the European courts before this issue is fully resolved”.

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