EU Refusal To Block P-Is "Justified"

The European Union has said that it was justified in refusing to allow European Union governments to block exports of low-priced pharmaceutical products from Spain and Portugal, because it was "upholding the principle of the free movement of goods" in the single market.

The statement has been made in connection with the lawsuit which was filed in the European Court of First Instance at the end of April by Glaxo Wellcome, Merck Sharp & Dohme and Organon. The suit is attempt to overturn the decision announced by the Commission on December 13, 1995, to reject requests from 10 EU member states for emergency measures to forestall the economic damage which they claimed that these imports would produce (Marketletter December 18 & 25).

The companies' suit alleges that the Commission decision places industry employment and research in jeopardy, and also endangers public health. Further, they claim, it undermines intellectual property protection, with the only benefit being reaped by businesses which exploit the price discrepancies.