Company News

This situation is fully unfair for the manufacturers which are losing 4% of total sales per year in the EU (€5 billion) related to parallel trade and also contributes to shortage of medecines in low price countries (France, Spain, Italy, Greece) due to wholesalers arbitration in favour of more profitable export versus the national market.

Since 2009, a group of pharmaceutical companies gathering especially the most innovative ones with very promising R&D pipelines is fighting to change the legislation in order to state the principle of the free pricing for exported drugs, or more precisely to limit the price regulation for the products consumed on the national market.
 
This principle was finally adopted by the Bertrand law in 2011 but with two limited clauses :
 
1/ A tripartite agreement between wholesalers, industry and government which will never be implemented
2/ A product list, difficult to set up due to the multiplicity of molecules concerned
 
Lately during the recent discussion around the law of public health, the pharma industry reintroduces a new version with a more sophisticated legal approach in order to be compatible with European law (introduction of a trusted third-party to avoid any exchange of information between industry and wholesalers).
Additionally, the industry proposed a compromise based on a mechanism of price complement with a “cap”, meaning “a margin share” with the distribution.
 
In spite of those efforts, wholesalers continue to reject any solution and finally in the validation of legislative orders regarding the drug agency, was introduced an amendment imposing to wholesalers a declaration of exported drugs.It is a small step, but a progress towards a better understanding of the real amplitude of parallel trade and finally its impact on the public health thru potential shortage of products.
We probably  have to go through this necessary step before being able to legally install a mechanism of financial compensation to reduce wholesaler gain in exporting to higher price countries.