The Pharmaceutical Journal
Vol 280 No 7499 p510-512
26 April 2008

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Recent challenges to parallel trade

In the first article in this series, Cathal Gallagher and Richard O’Neil discussed the genesis of the law governing parallel imports. In this article they examine recent challenges to the legality of the parallel trade and measures designed to reduce or prevent it

Parallel trade series

SUMMARY

The legal arguments for and against the parallel trade in medicines have, on the whole, been fought between two camps: parallel traders and the pharmaceutical industry.

Those engaged in parallel trade generally contend that their activities promote competition, thereby reducing prices to the benefit of patients and the health service.

Those in the pharmaceutical industry say that parallel trading does not benefit consumers because prices are set by EU member states and are not determined by supply and demand.

Pharmaceutical companies also say that parallel trading cuts into their profits, leaving less money to invest in research and development.

Most recent cases involving parallel trading have either been initiated by pharmaceutical companies challenging its legality, or by parallel traders challenging restrictions imposed by the pharmaceutical industry in an attempt to reduce the profitability of the trade.

This article will examine the more prominent of these cases and assess their outcomes.

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