Parallel trade and pharmaceuticals: a policy in search of itself

Article abstract:

This article reviews legal and economic arguments that cast doubt on the merit of a competition policy centred on the protection of parallel trade in pharmaceutical products subject to divergent Member State price regulation. The dicta in the judgment of the Court of First Instance in the Adalat case provide the basis for consideration of the legal and constitutional arguments against using competition law as the means to pursue the creation of an internal market for prescription medicines in the absence of harmonisation at EU level. Economic analysis of the negative welfare effects of such a policy provides additional compelling reasons.