GSK: Trade ruling 'vindicates' European sales policy
7 September 2006 00:00 in Pharmaceutical Government/ NHS related news
GlaxoSmithKline (GSK) has won a trade case in Greece concerning the supply of its Lamictal, Imigran and Serevent treatments to wholesales - a ruling that vindicates the company's sales policy across Europe, the company claims.
Greek pharmacy cooperatives and wholesalers lodged a complaint against GSK with the Hellenic Competition Committee after the company refused to supply unlimited amounts of the drugs in question.
The wholesalers argued that this abused competition rules and hindered parallel trade. However, the practice of buying unlimited amounts of drugs could allow wholesalers to sell them on at a higher price in other countries, GSK argued.
While the European Court of Justice issued a ruling in GSK's favour in 2003, it was referred back to the Hellenic Competition Committee, which supported the European court's decision.
Andrew Witty, president of pharmaceuticals in Europe for GSK, remarked: "This is a vindication of GSK's commercial policy in Europe.
"It is common sense to allow a group like GSK to organise its business to ensure that it meets patients' needs in each and every country across the region - a legal and moral obligation GSK takes extremely seriously."
"[The ruling] benefits primarily traders who pass on none or almost none of the price differences to patients and payers," he added.
Last month, GSK paid $70 million in an attempt to settle nationwide class-action claims regarding the average wholesale price of drugs in the US.
GSK denied any wrongdoing and said the payment was an attempt to "put this historical matter behind it".
© Adfero LtdOther news stories from 07/09/2006
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