The impact of parallel trade on drug shortages is poorly studied but heterogeneous price setting between European countries makes its role in drug shortages plausible.
This phenomenon of parallel trade can effectuate drug shortage when export of the product is not foreseen and cannot be anticipated [ 22].
The government is panic-stricken and the multinationals only think about themselves and the issue of parallel trade because wholesalers can legally sell them to other European nations at a higher price".
From the firm's perspective, if country markets are well segmented, intellectual property rights (IPRs) are protected globally and there is little threat of parallel trade or leakage into other country markets, Ramsey pricing could be used to establish affordability in different market environments.
The outgoing chief executive, Sir Andrew Witty, who will hand over to the company's consumer healthcare chief Emma Walmsley at the end of March, said parallel trade could "cease in entirety," depending on the terms of Britain's exit from the EU.
Another area where GSK could benefit is "parallel trade," which involves the shipment of drugs from low-cost countries such as Greece and Spain to countries such as Britain and Germany, where prices are higher.
A company spokesperson disagreed with the total but confirmed four medicines had been withdrawn "because alternatives were available and because of the parallel trade [reselling] situation in the country".
Moreover, the militants ran a parallel trade by truck to supply themselves along many of the same routes, he said.
The pharmaceutical industry says many shortages are because of products being exported through parallel trade, and has urged the government to address set drug prices.
German law mandates that pharmacies have at least 7% of their stock coming from parallel trade or face penalties.
