Medicine traders join forces over exclusion from EU meeting

Parallel traders of medicines have condemned their exclusion from a gathering of pharmaceutical industry stakeholders to be hosted by the European Commission next month (29 September).

Health ministers, MEPs, senior industry representatives, patients and health professionals will be among those present at the high-level pharmaceuticals forum. The group aims to address issues pertinent to the EU market including pricing and reimbursement.

Parallel traders compete with big industry players such as GlaxoSmithKline (GSK) in the distribution of branded medicines in Europe, purchasing medicines that are cheaper in one EU country to sell in another. They argue that their participation in a market where sales of patented products are assured helps to drive competition and innovation.

"We asked to be part of the pricing and reimbursement working group, which is directly relevant to us," said Heinz Kobelt, secretary-general of the European Association of Euro Pharmaceutical Companies (EAEPC). "We know that this group is looking at issues concerning parallel traders. What we are missing so far is a convincing, objective reaction from the Commission stating some reasons why we shouldn't be there."

Kobelt pointed out that the EAEPC, which has 70 member companies from 18 EU countries, was the only organisation representing parallel traders' interests. EAEPC companies have a turnover of €4-5bn annually. "We are absolutely of the opinion that the work of this forum is useful, but only relevant when all parties concerned are there," he said.

The Commission, which is to meet parallel traders in September ahead of the forum, expressed surprise at the ill-feeling within the EAEPC. "I understand they are not happy, but we can't invite everybody to the forum," said a Commission source. "There was a selection process at the beginning to make sure we have balanced participation."

The source claimed that parallel trade would not be discussed at the meeting. "The core focus is improved information for patients, use of effectiveness assessments for new drugs and pricing reimbursement mechanisms to exchange experiences and ensure member states can manage costs. Parallel trade is not a core focus," he said.

Chris Strutt, vice-president of GSK's government affairs division, was also adamant that parallel trade would not be discussed at the meeting. "It's widely accepted that parallel trade only benefits the traders themselves," he said. "It doesn't do any favours to governments or patients and it certainly doesn't do anything to support innovation and competitiveness in Europe. At member state level, there is also the view that parallel trade is of limited benefit to a limited group of people."

But the EAEPC claimed otherwise. "I can assume the question will be raised at least informally," said Kobelt, citing behind-the-scenes support from countries such as Sweden, Denmark and Poland, which benefit from the lower prices offered by parallel traders.

Only two days before the forum (27 September), the European Court of First Instance is to issue its judgement on GSK's appeal against a 2001 Commission decision to disallow dual-pricing in Spain. So it seems unlikely that parallel trade will be forgotten. In the Spanish case, the Commission disapproved of tactics employed by GSK to clamp down on parallel traders. The drugs giant had introduced a scheme whereby parallel traders would be contractually obliged to pay more for products sold outside Spain. Pfizer is currently implementing a similar scheme in Spain.

Parallel traders of medicines have condemned their exclusion from a gathering of pharmaceutical industry stakeholders to be hosted by the European Commission next month (29 September).

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