Parallel Trade in the Pharmaceutical Market – Current Trends and Future Solutions

Abstract

This article explores the relationship between EU law and the pharmaceutical market. It analyses the political debate on the competitiveness of the European pharmaceutical industry, in the view of the enlargement, the different models of regulation of pharmaceuticals in the Member States and the economic theories of parallel trade and intellectual property rights. Against this background, it is demonstrated that both the Commission and the Court of Justice have adopted a strong pro-single market approach, whereby price regulations, ethical obligations to sell medicines and the need for adequate reward of investment in research and development have been considered incapable of limiting the scope of application of the European law of competition and free movement of goods. The article suggests solutions available under the existing legal framework; it also proposes, in view of further European harmonisation, the principle of effective and fair negotiation as a core element in price regulation in the Member States.