EFPIA disappointed by Euro Commission approach to PI trade in GSK decision

The European Federation of Pharmaceutical Industries and Associationshas expressed its disappointment over the European Commission's decision to disallow Glaxo SmithKline's dual drug pricing scheme in Spain, a view shared by GSK, which is still pondering as to whether it will appeal (Marketletter May 14).

The EFPIA says it intervened in the case as an interested third party, since the problems that faced Glaxo Wellcome - now GlaxoSmithKline - are common to the European pharmaceutical industry as a whole. At a Commission hearing held on December 8-9, 1999, the EFPIA provided evidence that parallel trade of medicines (ie the purchase of medicines at low prices in one country and their subsequent resale at higher prices in another country) is harmful to the research-based pharmaceutical industry and of little benefit to patients and payers in Europe.

Commenting on the Commission's decision, Brian Ager, EFPIA director general, said the "EFPIA considers that the European Commission has taken an overly formalistic approach in applying the EC competition rules to protect parallel trade where such a rigid approach is not warranted in the pharmaceutical industry. Prices in our sector are largely determined by national governments based on public policy considerations. They do not reflect the normal interaction of supply and demand."