Pharmaceutical Business review

EC to prioritize issue of parallel trade in drugs

The commission has initiated a two-part study of pharmaceutical distribution channels in December 2006. The first part of the study, dealing with safe medicines in parallel trade, was completed at the end of 2007 and the second, covering counterfeit medicines, was due to be presented in 2008.

The first results of the study revealed that parallel trade brings a substantial risk to the safety of the patients because of the complexity in supply and distribution channels, packaging and labeling of the products as well as the difficulty in enforcement of drug laws, according to Guenter Verheugen, vice president of the European Commission.

However, the European Association of Euro-Pharmaceutical Companies (EAEPC), representing the parallel traders, denounced the study report and contended that parallel distribution helps make expensive, innovative medicines more affordable for patients and governments.

The commission has said that it is analyzing the study findings to develop a coherent strategy to avoid the healthcare risks and that it is planning to prioritize the issue of counterfeits and explore new ways to address parallel trade, in particular with respect to pricing initiatives. Given the importance of public health policies, the commission said that it is examining various political options and their social, economical and ecological fall-outs.

Mr Verheugen said: “The whole issue of pricing and reimbursement of medicines in the European Union is under the full responsibility of the member states; we have no powers whatsoever, but it is obvious that we need to cooperate, which is why pricing and reimbursement is a priority for the commission.”