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How does parallel trade affect the market?

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Parallel trade with medicinal products creates a real competitive environment and helps regulate the prices of medicinal products in the Member States and should therefore be protected, tolerated and encouraged.

Parallel distributors buy products at lower cost from pharmaceutical manufacturers in one country and sell them to another country where the price is higher. Such trading is legal under the rule of regional exhaustion of the trademark owner's right applied in the EU and EEA.

Up to date, parallel distributed Rx products have shown a price effect in favor of consumers of 20 to 50% reduction in prescription drug prices.

Parallel distributors are subject to the same regulatory requirements as producers of original or generic products and are under regular control by national and European regulatory authorities.