Parallel trade

A key factor in undermining European pharmaceutical competitiveness is parallel trade in medicines between EU countries. Parallel trade of medicines in Europe (i.e. the purchase of medicines at low prices in one country and their subsequent resale at higher prices in another country) primarily results from trade distortions arising from the fact that EU governments set pharmaceutical prices on which there is constant downward pressure. By simply exploiting these price differentials, parallel traders do not create value for Europe’s healthcare, society and economy.

EFPIA considers that the European Commission is taking an overly formalistic approach in applying the EC competition rules to protect parallel trade where such a rigid approach is not warranted in the case of price-controlled pharmaceuticals.

The nature of parallel trade is such that it greatly complicates the traditional route of supply where quality control is effectively checked at all stages. Examples reported by research-based pharmaceutical companies highlight a series of safety and quality problems arising from the handling of pharmaceutical products by parallel traders, in addition to logistic problems and regular product shortages in some countries where medicines simply do not find their way to patients in need. This raises not only serious safety issues in terms of patient consumption, but also acts as an obstacle in case of product recalls.