GSK draws flak for restricting parallel trade

The Greek wholesalers took GSK to court after the company refused to supply them with shipments of epilepsy drug Lamictal (lamotrigine), the migraine treatment drug Imigran (sumatriptan) and asthma drug Serevent (salmeterol) in November 2000. GSK reduced its shipment volumes to pharmacists to restrict parallel trade in the Greek market.

In September 2006, the competition authorities in Greece ruled that GSK had not acted unlawfully in restricting supplies of the three products but the European Court of Justice chose to differ with this ruling. The advocate general Damaso Ruiz-Jarabo has opined that if a pharmaceutical company holding a dominant position refuses to meet the orders of wholesalers, in order to limit parallel trade, then the company is said to be wilfully engaging in abusive practice.

Mr Ruiz-Jarabo said that apart from the description of the negative consequences of parallel trade, GSK has failed to show any positive aspect resulting from its cutting down on medicinal supplies to wholesalers. The European Association of Euro-Pharmaceutical Companies, which represents the parallel traders, hailed the advocate general’s opinion and urged drug manufacturers to stop hindering the free movement of medicines inside the EU.