UK parallel trade drug flow reverses

A combination of price controls and the weakening of the UK pound has caused a shift in the pattern of parallel trade in medicines across the European Union, with fears of shortages, according to the Financial Times. The UK government's renegotiation of the Pharmaceutical Price Regulation Scheme, half way through its current five-year term, is intended to cut the National Health Service's drug bill of about L11.0 billion ($16.50 billion), reducing the price of patented products by 3.9% (Marketletter October 27).

According to Julian Harris, a research fellow at the London-based think-tank, the International Policy Network, "in theory, there shouldn't be a problem with pharmaceutical products being re-exported." However, he told the Marketletter that he opposes repackaging for potential security reasons. Mr Harris added that "price controls are the bigger stimulant" while acknowledging that currency fluctuations will create an additional incentive to pharmacy wholesalers.