Home   Contact us   Terms of use
SEARCH: Advanced Search
-
THE RTMA Main Header Banner
-
 MEMBERS <->  EVENTS <->  RESOURCES <->  DISCUSSION <->  RESEARCH <->  ABOUT THE RTMA
SPONSORS

VIA
Co-founders of the RTMA.

RTMA NEWSLETTER

If you would like to receive regular news of RTMA events and activities, please click on the subscribe button below.
SUBSCRIBE
Should Channel Management be a CXO role?
Yes, it should rank alongside Marketing & Sales
No, It should be part of the CMO/Marketing Director's role
No, it should be part of the CSO/Sales director's role
No, it cuts across all functions
SUBMIT
Poll results
Poll archive
ROUTES TO MARKET

DISTRIBUTORS SET TO TAKE LEGAL ACTION AGAINST GSK
Big pharmaceutical distributors are readying themselves for legal action against GlaxoSmithKline, claim the heads of national distributor trade associations. From the start of this year GSK has limited supplies to European distributors in order to halt parallel imports. The rest of the drugs industry is watching GSK's progress with bated breath. Merck Sharp & Dohme and Eli Lilly are both operating similar schemes and many other drugs companies are preparing to follow suit.

Rating: NO CURRENT RATING | Rate this article

SAVE Save PRINT Print EMAIL Email


Distributors are furious at these moves. The French trade association is in talks with the Ministry of Health and the Ministry of Economic Affairs. Olivier Le Guisquet said: "Under French law distributors have a duty to guarantee supplies. We can not do this if the drugs companies impose quotas. It is a political question. Is it GSK or the French government who controls drug policy?"

But some suppliers reckon that distributors are too cowed to react. A senior manager at one said: "MSD and Lilly have been operating similar schemes for nearly eight years and none of their distributors have ever taken legal action."

But Michael Watts, head of the British Association of Pharmaceutical Wholesalers says the European Association will definitely be taking action. He claims: "These restrictions are affecting distributors ability to ensure supply." European Association head Monika Derecque says: "I can not say that we are definitely taking legal action. We don't want a fight with the industry. We have never taken legal action before."

National governments effectively set prices in Europe and single market legislation allows middlemen to make huge profits by exporting from low price regimes such as Spain to high price regimes such as the UK.

Restricting supplies could be deemed to impede the single market and, as such, the drugs companies could face swingeing fines. To avoid these, GSK notified the European Commission in advance of its plans. Such advance notification of new schemes generally means that the EU does not impose punitive fines.

What of the EU? The European Commission normally takes a couple of years to rule on new notifications, but four months ago distributor sources were forecasting "a volcanic reaction" to the GSK notifications. Now Direq says: "Unfortunately it does take a long time unless the Commissions decides on interim measures. I doubt that this will happen. I have learnt that the Directorate for Competition has started looking into things." She adds: "Apparently , they have received some complaints, but not from us."


1 | 2 | Next

Related Articles
Facing up to grey markets
Max Hotopf
Protecting the company’s trademark? That’s not my job!
Paul Sher
Choice of law: Best legal strategy
Max Hotopf
Commission awaits Bayer decision
Max Hotopf
Planning for termination
Max Hotopf




Apply now

Executive education
Check out INSEAD's new program on distribution channel management
Read more...
-
The Routes to Market Journal
The quarterly channel management Journal
Read more...
-
-----
© 2008 The Routes to Market Association // Tel: +44 (0) 20 7585 3399 // Fax: +44 (0) 20 7924 5284 // Email: info@the-rtma.com
-----
Registered number 3579985 England //
The Routes to Market Association, 4th Floor, Sterling House, Great Eastern Wharf, Parkgate Road, London SW11 4NQ //
Site powered by WORKSsitebuilder