Twin savings on parallel imports
The prices of the same drugs differ within individual EU markets. For example, Tamiflu, an anti-flu medicine that is produced by Swiss concern La Roche, is 40 percent cheaper in Greece than in Poland. The difference doesn't stem from the varying production costs but from the profit-oriented policy of pharmaceutical concerns - in each market they charge the maximum price consumers are able to pay.
Until now, in order to get the cheaper equivalent of a given medicine, patients had to wait for a drugs' patent to expire and generics to appear on the market. However, since Poland's accession to the EU it is totally legal for distributors to ignore the policy of pharmaceutical concerns and play on price differences within European Economic Area markets.
Blazing a trail
Delfarma is the first Polish distributor to use parallel imports in Poland. "We are going to offer original drugs for 15- to 20-percent less money. A cheaper Bayer aspirin is already available on the market - the cardboard box is changed in a German plant but inside it you'll find the familiar green package and instructions for use. We would like to obtain permits for the parallel importation of 100 drugs by 2006," says Tomasz Dzitko, CEO of Delfarma.
For the time being, big drug distributors in Poland are not interested in parallel imports for fear of losing their major clients - pharmaceutical concerns. However, the phenomenon is likely to expand gradually. In the UK, the market share of drugs from parallel imports exceeds 15 percent, in Denmark it reaches 10 percent and in Germany five percent.
Safety issue
Dzitko stresses the fact that parallel imports are not only legal but also safe, as distributors need to get a separate Health Ministry permit for each drug. Applications and documents are first sent to the Office for the Registration of Medicinal, Medical and Biocidal Products and only after they have been processed and signed by the Minister can drugs be sold in pharmacies.
Leszek Borkowski, chief specialist in the registration office, said: "So far, the authorities have issued 18 permits for the parallel importation of human drugs and four for veterinary medicines. Thirty-five more permits will soon be signed by the Minister of Health. In each case, the patient's best interests are of paramount concern."
Legal challenges
Pharmaceutical concerns have questioned the legality of parallel imports and complained to the European Court of Justice on many occasions, but in all cases, except for one, the court ruled in favor of the defendants. Parallel imports to Poland could translate into losses for companies such as Bayer, GlaxoSmithKline, Servier or Eli Lilly, however, in many cases pharmaceutical concerns use parallel importation for their own benefit.
So far six Polish pharmaceutical distributors have applied for permits to sell particular drugs, as they strive to increase their share in the zł.14 billion annual income from drug sales in pharmacies.
