Europe and China settle pharma dispute

The European Union and China have settled a long-running disputeconcerning China's denial of "administrative protection," which provides manufacturers with an alternative to patent protection, for pharmaceutical products originating from Austria, Finland and Sweden.

The two sides have managed, says the European Commission, to eliminate differential treatment according to nationality, and applicants from all EU member states, including the previously-excluded three, will now be treated the same in China.

The agreement ends a dispute dating back to 1994 which has caused losses estimated by the European pharmaceutical industry of approximately 25 million euros ($23.4 million). Administrative protection was introduced in China in the mid-1980s and grants marketing exclusivity in the country for pharmaceutical products patented in other countries. When the EU and China reached the agreement on administrative protection for pharmaceuticals, the EU consisted of only 12 member states.