New report claims savings from parallel drug imports, but more could be made

A new report released in Brussels, Belgium, claims to show significant savings for governments and patients from parallel trade in medicines. It says that the total direct savings resulting from the competition of parallel imports in only four European countries in 2004 amounted to 441.5 million euros ($554.1 million).

The report was drafted by Danish health economist Kjeld Moller Pedersen and his colleagues from the University of Southern Denmark, and the work - which reportedly cost L25,000 ($45,453) - was paid for by the European Association of Euro-Pharmaceutical Companies, which represents parallel traders. It claims to be the most complete study undertaken into the effects of pharmaceutical parallel trade in Europe and also suggests savings could be larger if parallel distributors could secure more supplies and if governments put in place effective systems that encourage savings.

Welcoming the report, Hans Bogh-Sorensen, president of the EAEPC, said: "in their heart of hearts, everyone knows that parallel trade must deliver savings - otherwise why would it exist? This report puts a number on those savings. It is a serious piece of research that also shows parallel trade adds significant value to the European pharmaceutical market."